Big Guys Put Squeeze On Search Ads

The much-heralded level playing field of paid search has begun to experience the unpleasant reality of a monopoly in the marketplace. So much importance is placed on Google that deeper-pocketed businesses may be driving smaller competitors out of AdWords. Greater awareness of search marketing, the ability to measure search campaign effectiveness and ROI, and the relatively lesser expense compared to other ad mediums may turn 2007 into a perfect storm of competition for desirable keywords, one that could leave the small- to medium-sized competitor swamped. If the dire circumstances illustrated by BusinessWeek Even as BabyAge's $1.2 million worth of search ads got more clicks in 2006, they netted fewer actual buyers, effectively doubling their cost. "We're out of business at this rate," fumes Chief Executive Jack Kiefer. He plans to cut back on search ads this year. Marketing expert Andy Beal, who was cited in the report, suggested on his When looking at the impact of rising prices and stronger competitors stalking through the paid search arena, one has to keep in mind who ultimately wins in this kind of arms race. As always, it's the arms dealer, Google in this case. Rough Type blogger Nicholas Carr At Google, this just reinforces what they are at the end of the day: a search advertising company. "It's overriding goal is, of course, to maximize ad sales, not to level playing fields," Carr wrote. Tag: Add to Del.icio.us | Digg | Reddit | Furl Bookmark Murdok: David Utter is a staff writer for Murdok covering technology and business.