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Big Guys Crowd Out Little Guys in SEM Arena; Some Branding Focused Advertisers Willing to Spend "Whatever" It Takes

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The Media Post article: Search Execs: Big Brands Muscling Out Small Players, reports on comments made at the SG Cowen Internet Conference last week in New York City.

During a search engine marketing session, panelists said that as search engine marketing grows in popularity, big name advertisers (the ones with lots of money) are "crowding out" small advertisers.

Bill Wise, CEO of Did-It.com told the audience:

That branding-focused advertisers are willing to spend whatever it takes to get their keywords listed. "Big companies will spend a lot of money to get that market share," he said.

Other panelists included:
+ Michael Yavonditte, CEO of Quigo
+ Gregg Stewart, senior vice president for channel management and marketing at Fathom Online

Yavonditte said that there was vanity involved because companies want their keywords at the top. He said, the "vanity" aspect is surprising.

Fathom's Stewart said:

"As the brand marketers get in and the smaller marketers can't compete, we're going to see local keywords as a way to hedge." Because of this, Stewart said, it's possible there may be some upward movement in local keyword prices.

A new report from Piper Jaffray released last week said:

There are clear indications that search is now being used for branding impact as well as its core customer acquisition ability," the report said. "Participants indicated that nearly 10 percent of search spending is now driven by the branding impact of search listings."


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