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September 05, 2007
Google vs. Minor League Search Engines
By Brandon Perry
Affiliate Manager
CPA Empire
There has been much discussion about how to stretch and maintain a good ROI while utilizing some of the smaller players in the search engine field. Not too long ago, search engines were thought to be very promising and people were seeking significant additional sources of revenue. With all of the intense high bidding wars on the main search engines including Google, Yahoo, and MSN, the lovely group at Marketing Experiments has taken a look at the smaller search engines to see if they are able to stack up to the ‘Big Boys’.
The results were a little surprising. Against seven search engines with four campaigns they found there was very little traffic compared to the monsters like Google. The conversion rate of the best performing engine was more than 50% higher than that of the second best, and almost four times than that of the third best. However, the conversion rate for the best search engine was a shocking 3.16%. That’s right, of the whopping 410 clicks generated on that search engine, there were only 13 leads generated. Overall Marketing Experiments spent $584.76 for ads placed on that specific search engine with earnings of $292.38 in a CPA (cost-per-action) model.
These results are disappointing to say the least, and show that the CPA earned from one of the smaller engines was 43.4% lower than that for Google over the same time period. They were also 59.2% lower than Overture (Yahoo!). Traffic may have a big play in these results as well, but this just goes to show you that there are precautions to be taken while getting your campaigns off the ground. If you are contemplating using a smaller search engine, some of the precautions to look for include:
-Approach smaller PPC engines with caution.
-Test everything on a few different search engines to determine which will be the most profitable for you.
-If an ad you are running on a specific search engine comes close to profitability, test different ads and see if you can increase your click-through rate.
-If you do isolate one or more search engines that can deliver a positive ROI, make sure those engines have sufficient reach. If you are achieving only a handful of sales each month, the profits earned may not make up for the cost of setting up, testing and managing that specific campaign.
Posted by Tom at September 5, 2007 03:30 AM