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According to a study conducted by MarketingSherpa and released in eMarketer's "Search Marketing: Players and Problems" report, the overall cost per click (CPC) rose from an average of $1.29 in 2004 to $1.61 (a 24.8% increase) in 2005 on Google AdWords. Yahoo! experienced a similar jump with its average CPC rising from $1.03 to $1.34 (a 30.1% increase) in that same time span. The interesting thing to note is that the average CPC on a shopping search engine grew at a much faster pace than it did on traditional search engines. In 2004, the average CPC on a shopping search engine was $1.87. That number jumped to $2.56 (a 36.9% increase) in 2005.
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Jennifer Laycock is the Editor of Search Engine Guide, an educational web site aimed at translating the search marketing world into something that small business owners can understand. Jennifer specializes in common sense search engine marketing, viral marketing and customer outreach via social media and blogs. A former search marketing consultant and in-house trainer, Jennifer’s clients have included companies like Verizon, American Greetings and Highlights for Children. Her primary clients now are a little girl named Elnora and a little boy named Emmitt.