DM News: Marketers Eye Alternatives to Google, Overture

Search engine marketers report that increased demand has made for steeply increased prices on major search engine systems Google and Overture. Some are turning to the estimated 525 alternative paid search providers. Still others are exploring the proliferating contextual networks that offer pay-per-click advertising. Fathom Online reports that prices on the major engines increased about 40 percent in the past year, driving his firm to smaller firms. Those alternative engines now deliver almost one in five of his clients' paid search clicks.

Some forms of alternative cost-per-click media tend not to convert clickers into buyers very well, but the much lower prices often even out that discrepancy. Other forms, however, seem to perform even better than Overture and Google. Vertical search firms like Business.com and Quigo are reported to convert at higher rates.

Second-tier search engines LookSmart and FindWhat both report having much lower costs per click, with LookSmart claiming most categories come in about a quarter lower than the price per click on top two search engines.