2nd November 2007
Click rates on paid-for links are decreasing but industry experts think it could just be "a blip", it has been reported.
According to Rhys Williams, founder of digital media agency Agenda 21, busier search content is affecting the industry. Reported in Marketing Week, he claims that more people are rejecting sponsored links, favouring products of natural searches.
Experts gave mixed predictions, with some agreeing that the industry is in decline and others pointing out that budgets for paid-for links are increasing year upon year.
Google's UK manager Matt Brittin said: "The overall picture is positive on click rates. It's a market where I would expect some advertisers to see click rates decrease."
He claims it is the clicks that actually lead to a sale that businesses should be measuring, rather than overall numbers of clicks.
A report by eMarketer predicts that online advertising will reach $1.3 billion (£624 million) by 2011, an increase of 142 per cent.
Bookmark and share 'Mixed outlook for sponsored links'