According to a new report by Group M entitled the Financial Implications of The Yahoo-Microsoft Search Alliance“, says that prices of PPC advertising are going to go up.
Way up, thanks to the Bing-Yahoo deal.
GroupM, is the search marketing specialist division of WPP “which is responsible for more than 1/3 of the world’s media buying”.
In the short term, GroupM thinks cost-per-clicks for branded keywords could go 78% higher than current Bing pricing, and unbranded could go 64% higher following the merger.
According to the report, after the holiday season and once the merger kicks in after the new year, prices will come down but still be higher than present levels.
For the beginning of 2011, Group M predicts 13% higher for unbranded and 23% higher for branded keywords over current Bing.com pricing.