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Sheer Heart Attack

Downturn In Internet Advertising (particularly Google)

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An interesting (and disturbing) thing is happening with my Google Adwords account. From what customers tell me, I am not alone either in this.

Roughly, we spent £4,000-£6,000 a month on Google Adwords up until last summer. We always get a slowdown in summer and last year's was no different. What did make it strange though is that business is still down around 40-60% on this time last year after the usual summer slump.

We've upped our Google Adwords minimum bid amounts to get as many people to our site as possible during the downturn. What is interesting though is that, despite spending more per click, we're now spending around £2,500-£3,500 on Adwords in a given month, up to 45% less a month than established averages.

It appears that less people are searching for what we are offering and when they do, the number of purchases relative to the number of paid clickthroughs is also down.

Is anyone else noticing a downturn in the number of people looking for their services via the net and lower ROI? Or, is your business in an area likely to benefit during a downturn and you've noticed the exact opposite?

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An interesting (and disturbing) thing is happening with my Google Adwords account. From what customers tell me, I am not alone either in this.

Roughly, we spent £4,000-£6,000 a month on Google Adwords up until last summer. We always get a slowdown in summer and last year's was no different. What did make it strange though is that business is still down around 40-60% on this time last year after the usual summer slump.

I'm not really involved with the money side but do have access to the info to find out, had a quick look and it seems that we are pretty constant, up if anything. We had a dip around Christmas but thats pretty much par for the course.

I would imagine it very much depends on what area of business you are in?

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We have been marketing a Caribbean Island since 2002 (average make-up of visitors includes 70% British) and in recent weeks I have concluded:

1. Usually by end of March we would have sold many summer hols (July/August) stays to families etc, to the point where flight seats start to get hard to find - hardly any sold so far this year and plenty of seat availability (if people mare prepared to pay the fares/fuel surcharges etc, which are at least 25% dearer than a couple years ago)

2. By this quarter we are often almost sold out for some popular small resorts, for Xmas dates - not happening this year, with very few xmas bookings so far.

3. When the Bear Stearns incident happened and the UK media first started to talk about "the next global depression" etc, thereby bringing this to the attention of many Brits for the first time, what few bookings we were getting slipped off the chart. I likened it to a friend almost as if someone had turned off a switch! Bookings have since picked up a little but year on year this is/will be* a disaster for this small island economy

*during the boom years since around 2002 when many people "felt" they could afford a Caribbean trip for the first time, often due to artificial feelinsg of wealth caused by HPI or with trips paid for on credit cards, many local or foreign investors borrowed heavily to build new guest houses, villas etc. In many cases they are newly opened or will open this year, and will need a good season to meet mortgage payments - I can see the repo men doing lots of business here and unemployment rising amongst employees - and employers.

The fundamental problem for the Caribbean (and similar long haul destinations) revolves around it being a luxury destination in terms of prices. Add to the mix the reduction in people flying due to carbon awareness and the future is bleak for the small islands' economies. Sadly, few if any local business people seem to think it will hit badly here - saying things like "while the pound is strong against the $ they will not be able to resist coming here" - but the pound is weakening against the $ AND "they" may not have homes, credit cards or jobs soon...

Ironically, many of the first to be laid off in the UK, after estate agents etc, will be travel agency employees.

Any other travel or hospitality industry people out there suffering?

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"Luxury" items on Ebay seem to be taking a hit too. I consider concert tickets as a pure luxury item. You can enjoy the artist's work cheaply through a CD (or for free via file-sharing sites), so attending a live gig is pure indulgence.

Recently I struggled to sell my 8 tickets for a recent high-profile gig. Ended up selling the last 4 for less than face value. I sold 10 tickets for the same artist last year at 25% premium to face value.

I also just bought tickets for a sold out gig in central London. Face value was £28. Buy-it-now price was £50 per ticket. I made an offer of £30 which was immediately accepted.

Monty

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An interesting (and disturbing) thing is happening with my Google Adwords account. From what customers tell me, I am not alone either in this.

Funny I should read your post after reading this...

Slump in Google Clicks

Could the slump in the American economy in particular, and elsewhere in the world too, be flowing through into the number of people clicking on Google ads?

ComScore “measures clicks on the four-line ads that Google runs next to its Internet search results. Clicks on such sponsored links rose 3 percent to 515 million in February from a year earlier, ComScore said Wednesday. In January, Google had no year-on-year growth, after a 25 percent increase in the fourth quarter over the previous year,” reported Bloomberg. Could the slump in the American economy in particular, and elsewhere in the world too, be flowing through into the number of people clicking on Google ads?

However from what I can gather there might have been another round of "Google Slapping" so might want to check that your ads are as targeted and as relevant to the landing pages as much as possible. I believe Adwords accounts not have a new "quality" score column you can turn on for specific campaigns.

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Our sales are down about 6%, not to bad considering the lower end items are selling a lot faster, the higher end has slowed down, so our profit margins are a lot lower.

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  • 295 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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