An article posted on Brand Republic confirms that since Google altered their brand bidding policy in May 2008, the average Cost Per Click (CPC) has increased and the average Click Through Rate (CTR) has decreased.
I am not surprised by the findings of this research, and I think it was obvious that the prices would jump up as advertisers competed for position on brand names.
The research indicates that CPCs increased by 31% and the average CTRs dropped from 28% to 20%, when comparing stats from April 07 with December 08.
It would be interesting to find out whether those companies buying other brand terms have found the added expense to be worthwhile, and what effect this has had on their overall conversion rates.
PPC management companies need to ensure their campaigns are highly targeted and fully optimised, to ensure the highest return is generated from the PPC spend. The use of tools such as Google Analytics is essential in the optimisation process in order to review detailed keyword data relating to keyword conversion stats.
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