October 18, 2005

Survey: Growth of PPC Spending Looks Healthy

Although a new survey of 87 media industry execs by Media Post and Deutsche Bank: Media Execs Bullish On Ad Spending, focuses on Internet advertising overall, it does offer a few nuggest that might be of interest.

Overall, respondents reported price increases for both search and display ads--including ads on run-of-network sites."

Growth in spending on pay-per-click ads also looked healthy. "Our survey results and channel checks suggest that pricing growth for the industry has picked back up in September after a flat July and August," states the report.

The majority of executives surveyed--58 percent--reported paying more for cost-per-click ads in the third quarter than in the second. Most of those who reported an increase in cost said it was between 1 and 10 percent.

Thirty-one percent of respondents reported no change in cost-per-click, while 11 percent said they paid less in the third quarter than the second.

Weighted growth in pay-per-click advertising came to 5 percent for the quarter, according to Deutsche Bank.

Posted by Gary Price on October 18, 2005 2:23 PM