Top 10 Emerging Media Trends: #8 Paid Search Cost Per Click Increases while Response Levels Decrease

Welcome to my blog series, Top 10 Emerging Media Trends. The Datamark Media team and I regularly develop a Top 10 list of practices and findings in the education market to share with our industry peers.

Media Trend #8: Paid Search cost per click pricing is escalating and response levels are down.

Adult education marketers have poured resources into PPC, realizing that these leads offer high interest intent and are exclusive to client side marketers.   The education portals generally resell these leads 3-4 times in order to maintain their desired margin.  Currently we see CPL and cost per click (CPC) levels escalate by as much as 40+% year-over-year.

One contributing factor to the increase in paid search cost is education portals maintaining their reliance on PPC while schools are  redirecting a portion of their CPL budget into their own PPC strategy.   With the increase in demand for popular education terms, the market turns into a bidding frenzy and generally the large education brands and portals are the ranking winners.   That being said, we expect to see a cooling off period as education portals spend significantly less in PPC because of the rapid escalation in click costs – it is no longer profitable for them.

Check back tomorrow for #7 in our countdown of the Top 10 Emerging Media Trends.

Scott Haslam

Scott Haslam has been with Helix Education for 3 ½ years and has over 8 years of experience in the Higher Education industry. He earned his BA degree in Communications from Brigham Young University.