Paid Search. Everybody's doing it. Everybody's excited about it. Lots of our clients at Abstract Edge are clammering for it.
Has it reached a point where the returns are getting too small? Well, it might be the case for at least one former client.
We worked with a small e-commerce company several years ago, performing technical maintenance on their website. At some point, the work we were doing was too basic (and thus too expensive) for their needs, and they found somebody more appropriate for them. We maintain a great relationship with them and I catch up with their CEO from time to time.
Over the last few years they have gotten a ton of business through paid search. Basically, $1 invested resulted in $4 of revenue. Now, things have changed. Keywords have been so competitive, that the ROI is now more like $1 invested results in $0.80 of revenue. Clearly that's not sustainable.
Obviously, this is just one data point. However, I'll be looking out for more evidence to see if a trend is emerging.