Sep 222010

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With Yahoo set to migrate paid searches to Bing in October, the media investment firm GroupM expects the marketing platform will experience a three-week period of volatility. 

Firms that make heavy use of search engines in their B2B online marketing campaigns should take note. GroupM anticipates that cost-per-click campaigns will increase by 64 percent for unbranded keywords, while branded keywords will experience a 78 percent growth.

Even after the transfer, GroupM believes that paid search costs will remain elevated. The firm expects paid search prices to settle at 13 percent to 23 percent higher than current values.

“Any time you interject change into the auction you invite pricing pressure,” said Chris Copeland, GroupM’s chief executive officer. “In this case, we see historical evidence that suggests regardless of the bid tools and the preparation, a period of short-term volatility will exist.”

While search campaign prices may be higher, the transition will enable Bing to provide more value to marketers’ campaigns. According to recent Nielsen reports, Bing and Yahoo combined account for 27 percent of all searches conducted by American internet users.

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