Swiss Adex reveals the prices of the nuggets
Internet: With the new keyword advertising index, it becomes clear who pays how much per click.
Internet The new index for keyword advertising shows who pays how much per click The first Swiss index for search engine advertising has been measuring the cost of advertising with Google on a monthly basis since March. With this launch, the online marketing agency Angelink yourposition is filling a gap in the advertising market. Until now, there have been no key figures for search engine marketing in Switzerland, unlike in the USA or Germany. The new index is designed to track trends and movements in keyword advertising. It should also show how advertising with key terms is developing. The Swiss Adex is based on click prices that Google offers potential advertising customers online, as well as other publicly accessible Google data, and shows what the most important keywords cost and how the booking volume is developing. The rule is: the more popular a keyword, the higher the price. In March 2006, the key data of 585 terms from 39 categories were indexed, the first comparative values from April showed a drop in click prices of 3.4 points to CHF 1.68 per click. This trend dramatized in May, with click prices falling to 1.49 francs. The booking volume also fell in May from 33 advertising spaces per query to 30. The fall in click prices is mainly due to telecommunications providers and insurance companies, which have massively reduced their costs per click (CPC). The decline in booking volume is based on the clothing and telecommunications sectors, which booked fewer Google advertising spaces and instead invested more in traditional advertising in May, according to Wemf's Advertising Index Switzerland.
"We examine how booking volumes and click prices develop, what the fluctuations and seasonal differences are," explains Lukas Stuber, Co-Managing Director at Angelink yourposition. So-called "nuggets" are observed for this purpose: Most expensive and cheapest search terms and sectors, advertising pressure in the sectors and pressure from abroad are listed on a monthly basis. "The price structure in search engine marketing becomes clearly visible and campaigns can be planned accordingly," says Stuber.
The most expensive terms in May were "private investigator" at CHF 15.81 per click, followed by "hosting" at CHF 14.49 and "data recovery" at CHF 12.71. By contrast, those advertising with "discount rate" or "chair" paid just CHF 0.12 and CHF 0.13 per click. The most expensive sectors in May were IT services (4.06), security (2.31) and personal care (2.29). In contrast, the cheapest sectors were agriculture and forestry (0.43), civil engineering (0.45) and machinery and equipment (0.64). The most advertising space was booked by dating agencies with an average of 46 ads, tourism with 44.5 and IT services with 41.3 ads, while the fewest ads were booked by insurance companies (B2B) with 6.8, civil engineering with 8.1 and financial services with 11.8 spaces. Advertising pressure from abroad is also surveyed, as Swiss companies only occupy an average of 40 percent of Google's Swiss advertising space. The highest foreign pressure is in the industry, finance and tourism sectors, where ads from abroad account for over 74% of the volume.
Need to catch upLukas Stuber,
Co-Managing Director of Angelink yourposition, on the launch of the Swiss Adex.
WW: Why is the Swiss Adex important? Lukas Stuber: Compared to neighboring countries, search engine marketing is still underrepresented in online advertising budgets in Switzerland. There is a need to catch up and provide information. So far there have been no key figures. The great response to the launch of the Swiss Adex shows us that we were thinking correctly. WW: Why are only Google data used? Stuber: As far as keyword advertising is concerned, Google has a market share of 85 percent in Switzerland, and together with Search.ch and Bluewin, which also place Google ads, almost 95 percent. WW: Is click fraud an issue in Switzerland? Stuber: Unlike in America, click fraud in Switzerland has so far only been an issue in specialist discussions. According to our measurements, the number of untraceable clicks that are nevertheless paid for on Google is not alarming. WW: How will keyword advertising develop? Stuber: A lack of know-how is evident in a large proportion of the campaigns set up. However, we also generally expect a very strong increase in investments in search engine marketing next year. Kathrin Fischer
"We examine how booking volumes and click prices develop, what the fluctuations and seasonal differences are," explains Lukas Stuber, Co-Managing Director at Angelink yourposition. So-called "nuggets" are observed for this purpose: Most expensive and cheapest search terms and sectors, advertising pressure in the sectors and pressure from abroad are listed on a monthly basis. "The price structure in search engine marketing becomes clearly visible and campaigns can be planned accordingly," says Stuber.
The most expensive terms in May were "private investigator" at CHF 15.81 per click, followed by "hosting" at CHF 14.49 and "data recovery" at CHF 12.71. By contrast, those advertising with "discount rate" or "chair" paid just CHF 0.12 and CHF 0.13 per click. The most expensive sectors in May were IT services (4.06), security (2.31) and personal care (2.29). In contrast, the cheapest sectors were agriculture and forestry (0.43), civil engineering (0.45) and machinery and equipment (0.64). The most advertising space was booked by dating agencies with an average of 46 ads, tourism with 44.5 and IT services with 41.3 ads, while the fewest ads were booked by insurance companies (B2B) with 6.8, civil engineering with 8.1 and financial services with 11.8 spaces. Advertising pressure from abroad is also surveyed, as Swiss companies only occupy an average of 40 percent of Google's Swiss advertising space. The highest foreign pressure is in the industry, finance and tourism sectors, where ads from abroad account for over 74% of the volume.
Need to catch upLukas Stuber,
Co-Managing Director of Angelink yourposition, on the launch of the Swiss Adex.
WW: Why is the Swiss Adex important? Lukas Stuber: Compared to neighboring countries, search engine marketing is still underrepresented in online advertising budgets in Switzerland. There is a need to catch up and provide information. So far there have been no key figures. The great response to the launch of the Swiss Adex shows us that we were thinking correctly. WW: Why are only Google data used? Stuber: As far as keyword advertising is concerned, Google has a market share of 85 percent in Switzerland, and together with Search.ch and Bluewin, which also place Google ads, almost 95 percent. WW: Is click fraud an issue in Switzerland? Stuber: Unlike in America, click fraud in Switzerland has so far only been an issue in specialist discussions. According to our measurements, the number of untraceable clicks that are nevertheless paid for on Google is not alarming. WW: How will keyword advertising develop? Stuber: A lack of know-how is evident in a large proportion of the campaigns set up. However, we also generally expect a very strong increase in investments in search engine marketing next year. Kathrin Fischer
