PPC downfall

[dvdrip]

My PPC has dropped from 12-13 Euro cents, a few months back, to 6.5 Euro cents today. October has an average of about 7 Euro cents.

I have 6-7 thousands domains parked at sedo so my sample is pretty big.
What is going on?

Anyone from sedo cares to comment?

 

[actnow]

The same thing is happening at all of the other ppc companies.

Trafficz (yahoo), Skenzo (yahoo), Goldkey (yahoo),
NameDrive (google), DomainSponsor (google), etc.

I'm positive Yahoo and Google are not counting many of the clicks.
And, cutting reduced pricing deals to reduce the claims over click fraud.

The big question is - Is this temporary or a trend?

 

[Theo]

I hope Google has their asses sued for copyright infrigement once they shell out $1.6 billion for YouTube. What's going on folks is the result of the Big Brother Monopoly that the owners of the pie AND the knife are imposing; on our very own traffic.

 

[DomainFatigue]

What's going on folks is the result of the Big Brother Monopoly that the owners of the pie AND the knife are imposing; on our very own traffic.

And the end result if this trend continues - further consolidation of the market by the big boys. They will be the only ones able to weather the storm. A lot of small time players like myself will likely be pushed out of the market as returns diminish and fail to cover renewal of present holdings...

 

[fatter]

I have said for years that the biggest threat to domainers is google capturing 80 percent or more of search traffic,if they have a monopoly they could pay whatever they wanted to domainers, affiliate programs just dont have enough of the market to compete, best thing for domainers is to have at least 3 big search markets competing for our traffic, perhaps google, yahoo and microsoft. I do see the day if payout continues to drop that parking companies like sedo combine forces with other bif paking companies and sell ad space like google with 20 million parked names they might make more and us.

 

[Theo]

The saddest part is that the politicians are not technology savvy to see what's going on. It will take a lot of push and a joint effort to publicize these animosities.

 

[domainah]

I can see that CPCs are dropping a little, but 50% within a month seems not right..Sedo is def. making more money now, it really loks like they are not paying anything close to the real deal for top notch keywords on the expense of bad ones

 

[grevan]

Mine dropped from 10 cents to 3 this month.

 

[BiggieBiggie is verified member.]

My PPC has dropped from 12-13 Euro cents, a few months back, to 6.5 Euro cents today. October has an average of about 7 Euro cents.

I have 6-7 thousands domains parked at sedo so my sample is pretty big.
What is going on?

Anyone from sedo cares to comment?

some of the epc has stabilized at sedo, but they are still paying less than some other ppc's for the same domains imo.

for instance, i had one at sedo paying $0.20 per click, but at DS it pays $0.86 > $1.06 per click. and i didn't even have to optimize it!

 

[dvdrip]

Officially this was the worst day ever.

Results:
1. 0.067 Eurocents per click (lowest in years)
2. This was the first Monday ever that had lower revenue than the previous Saturday and Sunday. Clicks were %15 more than the weekend and the revenue was lower.

 

[David G]

As posted elsewhere too, Adsense and YPN stats are off quite a bit over past few mos and even worse lately with the first 8 days of Oct being about the poorest time period with them in about 3-years.

Also thinking that is also why the parking firms are down too and why you read so many negative posts about them lately.

 

[McDot]

I think we are facing a larger problem, than what we see on our side. I think we are probably a little narrow minded, just looking at our point of view.

Mind you, I have no intention of defending Sedo, Google or any of the others involved. Fact is, the ammount of parked domains trying to make advertising profits (plus the developed sites) is huge and is getting larger every day. On the other side, the money volume that advertisers are budgeting for this purpose is not growing in the same relation.

Certainly the click revenues will go down. Whether the second click on the same page is not counted, or the price per click goes down, is only secondary.

So where are we going from here?

 

[GoPC]

So where are we going from here?

Development...

You are absolutely right on the money. The rate at which parkers and their sites are growing is not proportional to the ad bugets. If anything, the ad budgets are actually being reduced on concerns of click fraud and competition of many parking services trying to secure what budget is left.

There is talk about a push for commission based clicks... I think they called it something like "pay per sale". Which is nothing more than an Affiliate Sales program, only in this scenario the idea is that advertisers wouldn't pay a thin cent until they SOLD something and then the costs would be higher than for a PPC ad.

While that certainly sounds good for retail advertisers, what about the rest of the market? It may sound odd but what about advertisers that drive traffic to their websites through PPC ads that DON'T sell products directly from the site? Like Pepsi or General Motors or Real Estate Agents.... how are these guys going to pay?

Honestly, they still will I think. They'll pay parking company, whomever, for the listing the same as they always did... only minus the cut that we, the publishers, would get and then only pay publishers when a sale is made. More profits for them, not us!

but....

BECAUSE there will always be the need for advertising and public brand awareness, I think there will always BE some variant of PPC revenues available... but I think that in the future, businesses will conclude that their internet advertising dollars would be better spent ONLY on developed sites offering relevant, topical content in their market niche thereby sidestepping the Parking Services alltogether.

What does that leave? Contextual PPC Advertising.

I don't see a "fix" for the demise of Parked sites... except to take the domain to the next level and develop it. Create your own revenue stream via contextual ads, affiliate sales and retail sales/services.

GoPC

 

[Theo]

I've been calling for a co-operative function for months now. There is a strong chance that the parking companies conspire and create artificial conditions. Who is overseeing their stats? Many times I compare my syslogs and they are at least 25% more active than what Sedo presents. Do you know what percentage of the feed your traffic is being rewarded with?

Bottom line: alternative parking companies, possibly run by domain owners. Cut the fat, the fluff, the middleman.

 

[Dr Nump]

I think the problem here is that all major feeds cant fight against cheaters , and they choose the way to reduce in PPC and rise in CPA .

 

[Theo]

And I point the finger to the parking companies and say, you're cheating us out of OUR money.

A former $0.35 /click down to $0.07 now. **** you!

 

[Beachie]

After chatting a little with Acroplex over the last weeks, I'm frantically working on an alternative - I'm not going in to details here, but I think it will help the domain industry monetise our property better and ween ourselves from our dependancy on Google and Overture. It's about a week away. I'll need some help spreading the word and some people willing to test and provide feedback. If you're interested in getting on board, please email me at [email protected] and put DNFORUM in the subject

(and it avoids the click-fraud problem completely)