Monday, July 19, 2004
The New York Times > Technology > E-Commerce Report: A Drop in Search Engine Ad Supply:
"By BOB TEDESCHI - Published: July 19, 2004
SEARCH engines like Yahoo and Google have spawned bidding wars among a growing number of marketers who want to place their ads next to search results. That is a beautiful thing for Yahoo and Google, of course, but in the long term, some analysts think it could haunt them.
According to a report to be released today by the Internet research firm Nielsen//NetRatings, the demand for search advertising is growing far more quickly than the supply of available advertising spots. The report's author, Kenneth Cassar, said the implications could be far reaching.
'In the long term, we'll hit a wall where a lot of the search buys that make sense today won't make sense anymore because prices will have risen so high,' Mr. Cassar said. 'So for the search engines to grow their revenues, they'll have to increase supply.'
...Eduardo Pretell, eLoan's vice president for marketing, said the company determined how well each search advertisement did in bringing in paying customers, then settled on a bidding price. As a result, the company has refused to outbid Centex, another mortgage company, to advertise next to the search results for "mortgage lender." Last week, Centex topped all bidders at $9.31; eLoan was second highest at $6.26. "But as long as that ad is performing well," Mr. Pretell said, "we're perfectly happy to pay what might appear to others as an exorbitant price." ..."
"By BOB TEDESCHI - Published: July 19, 2004
SEARCH engines like Yahoo and Google have spawned bidding wars among a growing number of marketers who want to place their ads next to search results. That is a beautiful thing for Yahoo and Google, of course, but in the long term, some analysts think it could haunt them.
According to a report to be released today by the Internet research firm Nielsen//NetRatings, the demand for search advertising is growing far more quickly than the supply of available advertising spots. The report's author, Kenneth Cassar, said the implications could be far reaching.
'In the long term, we'll hit a wall where a lot of the search buys that make sense today won't make sense anymore because prices will have risen so high,' Mr. Cassar said. 'So for the search engines to grow their revenues, they'll have to increase supply.'
...Eduardo Pretell, eLoan's vice president for marketing, said the company determined how well each search advertisement did in bringing in paying customers, then settled on a bidding price. As a result, the company has refused to outbid Centex, another mortgage company, to advertise next to the search results for "mortgage lender." Last week, Centex topped all bidders at $9.31; eLoan was second highest at $6.26. "But as long as that ad is performing well," Mr. Pretell said, "we're perfectly happy to pay what might appear to others as an exorbitant price." ..."
Comments:
Post a Comment
