‘Tis the season!
For e-commerce stores, that simply means being aware of the annual tradition of comparison shopping engines hiking up their costs per click. In an effort to capture a bit of their own holiday glee, CSE’s like Pricegrabber, NexTag and Shopzilla raise their rates by as much as 25%.
How does that work?
Cost Per Click – Bid Model:
If you list products in NexTag, under the TOYS category, your normal minimum bid is 25 cents per click. During the holiday shopping season, NexTag increases their pricing by 25%. So the new minimum cost per click is 32 cents per click. Now, you may not be affected by this at all. If the bids you set on your products already start higher than that minimum bid, you may not feel any difference in spent budget. However, the increase in minimum cost per click does bring lower positioned competitors higher on the results page. Be aware and adjust accordingly.