Will PPC Costs Rise With Gas Prices?

May 18, 2006 • 7:54 am | comments (0) by twitter | Filed Under Google Ads (AdWords)

A DigitalPoint Forum thread asks if the prices of search ads rise with the price of gas prices. Some reason that Google AdSense (or YPN) publisher's costs are going up, so the ad prices must go up. Others reason that Google AdWords (or YSM) advertiser's costs are going up, so they have less disposal income to spend on ads, because it is all going to gas, so the ad prices will go down.

But as more new advertisers get into the PPC advertising game, costs tend to go up. It is the nature of the auction based pricing mechasinim.

Forum discussion at DigitalPoint Forums.

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