Paid ad revenues may slow down

It's being reported that paid ad revenue with the search engines may slow down in the next couple of years. The artcile mentions maturing but I think I know why this is slowing down. It's real simple, people aren't getting the return on investment that they want. With ad bidding being the online model, the prices per click are too high for the sales they are producing. Here's the deal, when someone pays $3-$10 per click they better be getting sales often. If the revenue is high and the profict is high then, and only then would it make sense to pay such high values.

There are other ways to beat that game of an endless spiral of bidding. It's interesting that the one thing search engines claim not to care that much about is the very thing that floats their boat!

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