27 May 2008

Sponsored links, what next?

With Google changing the policy on trademark bidding in May in uk and Ireland, advertisers are now left with a difficult choice, both financially and ethically: to bid or not to bid on competitors / trademarked brands?

Since Google's policy allows it, why not do it you could ask? Its all well and good, but with paid advertising costs already going through the roof, how can advertisers sustain yet another increase in their paid spend? It looks to me that this new policy will lead to a bidding war in which the only beneficiary will be Google itself with advertising revenues increasing even further...

Are advertisers going to benefit from this, highly unlikely....but running paid campaigns is currently unavoidable for any business wanting to maximise their online presence. We could then witness a win-lose scenario for advertisers and even more focus put on black hat SEO techniques by smaller companies not able to afford the cost of sponsored listings> Lets keep an eye on this in the next few months and see how everything turns out...

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