After the agreement between Microsoft and Yahoo, the cost of online advertising could skyrocket by up to 73%

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After the agreement between Microsoft and Yahoo, the cost of online advertising could skyrocket by up to 73%

According to a report by the advertising agency GroupM, following the advertising agreement between Microsoft and Yahoo with which both companies will begin to show advertising on their search engines together, the cost of clicks could skyrocket. According to the information from the study Benin Mobile Database itself, in the long term this merger could generate a considerable increase in the cost per click (CPC) of around 13% for keywords. Currently, many advertisers bid on these keywords to advertise through Bing, the Microsoft or Yahoo search engine, but not both. However, when the strength of both giants is combined, there will be more advertisers to bid on each keyword, which will lead to much greater competition and their prices tend to rise. Benin Mobile Database

Even so, it is unlikely that this transition will go smoothly since before the new advertising costs are established, forecasts point to the cost of clicks to skyrocket increasing by up to 73% on average over a period of time. of at least several weeks. The answer is simple. Both of these ad markets have been around for a long time showing signs of their effectiveness Brother Cell Phone List and stability. When the two markets merge, advertisers will compete against a new, much larger set of competitors, making it difficult to predict what will bring advertisers in these keyword buying and bidding processes.

In this regard, GroupM experts point out that historically, this type of “disturbance” has led to market volatility and consequently to a rise in prices in the short term. The upshot of all this is that after the merger, the initial stage will be difficult for advertisers as they don’t even know how much they will have to bid or pay for their ad clicks.

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