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Pay-per-click use growing among small businesses

11 March 2004

Small business advertisers are currently allocating around 23 per cent of their total budget to pay-per-click services, a new survey reports.

Research conducted by The Kelsey Group and ConStat Inc found that per-click (PPC) advertising is attracting an increasing percentage of advertising revenue among small and medium-sized enterprises (SMEs) in the United States.

More than half of the SMEs surveyed revealed that they planned to increase PPC activities next year.

Over half of respondents (56 per cent) stated that PPC has potential and agreed that it will be an important advertising method for their company in the future while 73 per cent of those interested in PPC expect to implement it within the next year.

"These data show that PPC is an increasingly important part of an SME's overall advertising program," said Greg Sterling, director of The Kelsey Group's Digital Directories: Interactive Local Media Continuous Advisory Service.

"PPC's appeal is based in large part on the perception that it's a low-cost means of customer acquisition."

Of the 460 advertising decision makers at SMEs surveyed online, 11 per cent were current users of PPC and 34 per cent were 'interested in' using PPC.

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