This increased competition has driven up cost-per-click (CPC) costs to the same level as high volume terms. This is despite having only 2% of the volume of the most searched term "loans".
For example, the CPC value of the term "consolidation loans" can be the same level as the high volume term "loans", with a maximum CPC of up to 拢18.50.
The rise in CPC should not be viewed negatively as returns are still as good. There are growing numbers of loan applications made online and the value of those loans are getting higher year on year.
Loan providers recognise that higher CPC costs are inevitable if they are to secure new customers.
And, with a good likelihood that customers will investigate other financial products with the same loan provider, the initial outlay can be justified by the opportunity to up-sell and cross-sell.
With debt and average house prices at an all-time high, increased CPCs are also symptomatic of consumer requirement for these types of financial product.
- Ben Knight, finance account director, The Search Works.
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