Performics: Search Marketers Adjusting to Changing Behavior

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A new study from DoubleClick's Performics claims that the period immediately after a spell of intense consumer activity can be dangerous in paid search because marketers risk not reacting quickly enough to changing marketing conditions and can continue to buy expensive keywords.

Marketers are increasingly aware of what can happen if they overbid on keywords, Performics said in its "Performics 50 Search Trend Report Q1 2006" released last week. The good news is they are adjusting strategies accordingly.

The report commends marketers for reacting quickly to the changing market during the holidays and reveals trends observed for the first quarter of 2006. Costlier keyword traffic plummeted from last quarter, and cheaper keywords have made a comeback, Performics said.

Overall, all is well in paid search. The number of keywords generating at least one click per month has swelled by 36 percent since first-quarter 2005.

"Not only are campaigns getting bigger, they are getting more effective, as sales growth outpaces the growth of costs," the report said. Paid search costs have increased 37 percent while sales have skyrocketed by 72 percent.
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