If you advertise your products on shopping comparison sites like Nextag, PriceGrabber and Shopzilla, you know what time of year it is. Holiday rate increase time.
By now you should have gotten the typical/yearly email such as these:
From Nextag:
The holiday season is around the corner and we would like to inform you that NexTag will be increasing your costs per click by 25% for all categories and all bids effective November 1, 2010 through January 4, 2011.
This change will affect all your clicks from NexTag. For example, if you have a bid of $0.60 per click, you will be charged a fee of $0.75 per click during this seasonal period. Your actual costs per click will be accurately reflected on your cost reports, but the bids will be displayed in the bidding tools without the 25% included until January 5, 2011.
NexTag realizes that you spend considerable effort throughout the year optimizing your campaign and that during the holiday season your bidding strategy changes. As a courtesy, effective January 5, 2011 NexTag will automatically reset rates on your behalf to your October 15, 2010 bids. If you want to adjust your bids, you can login to your account and make any changes using the “Manage Bids by Category” or “Manage Bids by Product” tools in your account dashboard on or after January 5, 2011.
During the holiday season, clicks from NexTag typically convert the best of the calendar year and we are adjusting your rates based on the additional value we bring to your marketing efforts.
Thank you for your business and have a great holiday shopping season!
From PriceGrabber:
Effective November 1, 2010, PriceGrabber will apply a temporary 25% cost per click increase adjustment across all subcategories. This holiday adjustment is temporary and will go through January 15, 2011. Past holiday seasons have shown increased performance in terms of both traffic and conversion to sale. Hence, customer acquisition costs are expected to stay consistent with previous periods going into and throughout the holiday season. Additionally, the holiday CPC adjustment is created to offset rising costs to bring you the most qualified shopper during this period.
Please note this adjustment will take place on November 1st without any required action on your part. You will be able to view these changes in your merchant login on Monday, October 18th. We appreciate your partnership and look forward to this holiday season! Please do not hesitate to contact your PriceGrabber representative. You are welcome to reply to this e-mail and it will be directed to the appropriate PriceGrabber representative.
From Shopzilla:
The holiday shopping season is nearly here and we want to inform you of Shopzilla’s temporary seasonal bid increases applicable in select categories. This change is effective November 15, 2010 through December 27, 2010 and reflects the increased consumer buying activity that occurs during the holiday shopping season.
In our continuing efforts to ensure our rates parallel the performance of the leads we deliver, seasonal trends, and industry developments, we are adjusting rates for only a select number of categories. From November 15 through December 27, 2010 we will adjust the cost per lead in each category by 0%, 10%, 20%, or 30%. Download our holiday rate table to review the category specific adjustments. Rate adjustments apply to all accounts in all categories with active bids.
We are committed to helping you maximize your sales during the 2010 holiday season. If you have any questions, please contact your Shopzilla Account Manager.
Every year I get these emails and every year I get frustrated by reading through them.
Nextag has always been my best converting shopping comparison site and thankfully they fill their email with the least about of BS. They simply say:
During the holiday season, clicks from NexTag typically convert the best of the calendar year and we are adjusting your rates based on the additional value we bring to your marketing efforts.
True.. they bring value, but do I like their increase, NO! Increase justified… Maybe.
PriceGrabber states:
…the holiday CPC adjustment is created to offset rising costs to bring you the most qualified shopper during this period.
Do they really do anything different during the holiday to increase their costs? I’m sure they make some big pushes and efforts for their really large advertisers, but for most small businesses/advertisers I don’t think they do much extra. Increase justified in my mind… NO!
Shopzilla states:
In our continuing efforts to ensure our rates parallel the performance of the leads we deliver, seasonal trends, and industry developments, we are adjusting rates for only a select number of categories.
To parallel the performance of the leads they deliver, seasonal trends and industry developments… who writes this crap! Increase justified… No and maybe. They do convert well, but I never seen them do much extra during the holiday period.
So overall do I think the increase is justified. No. I think they’re just holding merchants/advertisers hostage during this time because they can. I’d rather them send an email saying they want to make more during the holiday so we’re going to stick it to you during this time of the year. IMO, the email would at least be honest this way