Yahoo and Microsoft Search Advertisers May See Rate Hike of Up To 78%
Cost-per-click is expected to rise dramatically as advertisers shift from using both the Yahoo and Microsoft Bing search platforms to using Microsoft's alone, creating a potential supply-and-demand imbalance in the keyword advertising market. Yahoo's paid-search advertising transition to Microsoft's Bing is expected to be completed as early as next month.
Following the transition to Microsoft's Bing for all paid-search ads, advertisers are likely to see a three-week period of pricing volatility, GroupM projects. During that time, GroupM expects average prices hikes of 64% for unbranded keywords and 78% for branded keywords. After the market settles, however, the research firm expects Bing's paid-search advertising rates to remain 13% to 23% higher than their levels prior to the transition.