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CPC Increase of 78% Due to Search Alliance

Posted on 9.19.2010

According to a study from GroupM Search, advertisers could see a cost-per-click increase up to 78 percent above current Bing CPC's as they move to one platform with the upcoming search alliance transition.

GroupM Search projects a three-week period of volatility post-transition before costs begin to settle. At the campaign level, advertisers can expect an average increase of 64 percent over current Bing CPCs for unbranded keywords and 78-percent for branded keywords during this time. Once the marketplace settles, CPCs on Bing will rest at 13 to 23 percent above current Bing CPCs for unbranded and branded keywords, respectively.

“Any time you interject change into the auction you invite pricing pressure,” said Chris Copeland, chief executive officer of GroupM Search. “In this case, we see historical evidence that suggests regardless of the bid tools and the preparation, a period of short-term volatility will exist.”

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