A recent article published by the New York Times speaks to the issues that now affect the ability to use Google as a marketing tool for local businesses. The article titled “Small Players Seek an Alternative to the Expense of Pay-Per-Click” was written by Darren Dahl and published on October 17, 2012 and I feel that it was one of the best pieces on why Google has become nearly impossible for small and medium sized businesses. And guess who is a small and medium sized business?
If you answered “Local Real Estate Agents” you would be Correcto Mundo!
A link to the article is provided below so that you can read for yourself the piece that may keep you from becoming more frustrated than you already are and wasting more money than you already have? In essence the article breaks down the major problem advertising on Google is the cost. In most categories the costs in the past ten years have not just doubled but multiplied by 20 times.
But after watching the price of keywords like “life insurance” rise to more than $20 from about $1 over the last 10 years, he decided to scale back greatly.
This increase of cost per click advertising is not limited to any industry and can be seen easily in both the lending industry as well as the real estate industry. When it comes to generating Real Estate Leads as an example our research indicates an increase of anywhere from 5 to 10 times.
Comparing real estate leads with the mortgage leads category was quite the eye opener. “Mortgage leads” have increased by closer to 15 to 20 times. Why the difference in mortgage leads compared to real estate leads is not covered in the article as the writer was more interested in illustrating multiple industries. I believe it has something to do with the consolidation of mortgage companies and the intense competition that has followed in the wake of the great mortgage meltdown.
Regardless of the reasons for pricing increases being different based on industry the one constant is that prices have increased and I don’t see any reason for the to stop anytime soon. As more advertising alternatives shrivel up and die, Google, Bing and Yahoo will continue to be the recipients of the advertising dollars that need a place to be invested.opener. “Mortgage Leads” have increased by closer to 15 to 20 times. Why the difference in Mortgage Leads compared to Real Estate Leads is not covered in the article as the writer was more interested in illustrating multiple industries. I believe it has something to do with the consolidation of mortgage companies and the intense competition that has followed in the wake of the great mortgage meltdown.
Real Estate Leads, Mortgage Leads, Google, Cost Per Click, Advertising