Quote:
Originally Posted by attorneydavid
There are a bunch of companies with VC funding trying to establish themselves as PPC resellers willing to run at a loss to show growth. I was getting 3 or so calls a week. Also every yellowbook in the nation as a PPC program. I'm convinced it's a bubble. Also there's still a large untapped pool of business owners who haven't been burned by PPC
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exactly
once SEO got "to difficult" all those shops now converted into SEM/PPC agencies. It is easy to setup and requires very little experience and know how... plus these idiots think they can just go out and run a muck taking peoples money.
the industry average for a markup now is 44%! That means for every $100 you give, they spend $56 in ads and keep $44. what are most of these companies providing you for 44% of your money... nothing!
I'm heavily involved in this field and talk to a number of small to large agencies very frequently, as well work with a few of them regularly. The biggest problem is churn and customers cancelling more quickly then before. Its because there is WAY to much competition driving up the costs, and not just that, its not even true competition... people/agencies building out campaigns that don't know what they are doing and bidding on terms that have no relevance to their services while it is driving up the cost to my clients.
But that is also a fault of Google for changing the old broad match to the new one, which allows every possible search phrase that has a third degree of relation to show your ads.