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GroupM: Get Ready For Higher Keyword Prices on Bing-Yahoo

One of the World's Biggest Search Spenders Says More Competition Will Push Prices Up 78% in the Short Term

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There has been lots of analysis so far on the impact of the search alliance between Bing and Yahoo on the search-advertising market, but what does the largest search advertiser in the world think?

GroupM, the holding company for WPP's four media shops, spends $900 million a year on Google for clients like AT&T, Dell, Unilever and, well, BP. In the short term, GroupM thinks cost-per-clicks for branded keywords could go 78% higher than current Bing.com pricing, and unbranded could go 64% higher during a "period of volatility" following the merger.

Once the market settles, perhaps early in the New Year, expect prices to come in at 13% higher for unbranded and 23% higher for branded keywords over current Bing.com pricing. More of GroupM's analysis below:

Financial Implications of the Yahoo and Microsoft Search Alliance
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