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Evidence on why you should focus on Paid search advertising.. Today!

I always think that with the recession, consumers of all sizes, shapes and colors will jump into the internet to shop. And when the crisis is over, online shopping will grow exponentially because consumers will get used to it, and have more money to spend then.

This hypothesis is now backed up by a real evidence.

According to data by AdAge.com

Where are the consumers?
A Euro RSCG Discovery shopper survey found that shoppers are gravitating toward online retailers, while cutting back on restaurants and bricks-and-mortar shops compared with a year ago. Where they shop:

* Online retailers: 29% more often
* Discount stores: 9% less often
* National chains: 13% less often
* Fast-food restaurants: 31% less often
* Department stores: 33% less often
* Boutiques: 39% less often
* Sit-down restaurants: 41% less often

What are they spending money on

Electronics and media
Consumers are surprisingly unattached to premium cable channels and magazines, and they’re willing to live without fancy cellphones and texting services. What consumers consider expendable:

* Satellite radio: 91%
* Upgraded cellphone: 88%
* Magazine subscriptions: 86%
* Cellphone service (text, picture, video): 77%
* Cable/satellite TV (premium): 75%

Still, this is one category in which a majority of consumers draw the line, saying they can’t live without basic internet and cable services. What consumers consider untouchable:

* Internet service: 81%
* Cellphone service (basic): 64%
* Cable/satellite TV (basic): 61%

For businesses that don’t have strong internet presence yet, this is a good opportunity to jump online.

The thing is, there are many online marketing channels: SEO, PPC, banners, video marketing, email marketing, Social media. You can’t possibly be good at all of them at the same time.

With shrinking ad budget, marketing needs to be direct, scalable, measurable, and fast to implement (time is money right?).

Q: What internet marketing channel meets those requirements the most?

A: Pay Per Click advertising.

Many businesses are becoming aware of this, here’s the data from AdAge to back it up.

NEW YORK (AdAge.com) — The internet advertising industry can soon expect to see its first contraction in ad spending since the 2001 bubble burst, according to a forthcoming report from global market data firm IDC.

The report also suggests fourth-quarter U.S. internet advertising sales, despite marginal increases in worldwide spending, have been far worse than estimated, increasing by just 0.4% to $7.13 billion from $7.10 billion in the same quarter last year.

According to IDC, search ads still grew 10% year-over-year in fourth quarter, buoying the sector at large, but display ads and classified ads fared worse, dropping 7% and 18%, respectively. IDC attributes the latter drop to stagnating movement of houses, jobs and cars, and because of the continued shallow numbers coming out of eBay, the major company in this segment.

Now is a good time to be an expert in Adwords, MSN Ad Center and Yahoo Marketing Solution, because if you’re not, chances are your competitors are setting up their Adwords campaigns, and reading all the books on PPC campaigns out there as we speak.

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