Paid ad prices on Yahoo! 'may increase' after Google agreement

16/07/2008

Pay-per-click (PPC) ad costs could increase as a result of the internet advertising agreement recently formed between Google and Yahoo!, it has been claimed.

According to SearchIgnite, costs for keyword ads on Yahoo! could rise by an average of 22 per cent if the deal - which will see Google display its ads alongside Yahoo!'s search results - obtains approval.

Despite this, getting to grips with the price differences between the various types of keywords available could help marketers to better adapt to the predicted price increases, the report suggested.

The study comes as the latest report from PubMatic indicates that internet advertising prices have remained stagnant for the third successive month.

Roger Barnette, president of SearchIgnite, explained: "Advertisers need to be aware of the potentially significant impact to their search marketing efforts.

"Most marketers will see their overall costs for search advertising across the Yahoo! network increase and will need to adjust their search strategies accordingly."