Shopping.com Setting a New Trend: Lowering CPCs for Q4?

As stated over at CSE Strategies, as predicted Shopping.com is raising the CPC rates for most of their categories in anticipation for Q4–however they are also unprecedentedly lowering their rates for certain categories for Q4.

Generally most merchants/online retailers don’t mind the increase since the shopping season offsets the cost increase with a generous increase in revenue as well, so you can imagine the delight of many merchants with the announcement with the combination of potentially lower costs and higher revenues.

As speculated by CSE Strategies, the state of the economy and low consumer confidence may have a lot to do with this decision, as Shopping.com may be predicting a slower shopping season than normal, and don’t want to force its merchants to pay the price–literally.

How big of a difference is this willing to make?

Probably nothing too significant, as just 14% of SDC’s categories have been reduced, but for those who sell primarily in those categories and who were anticipating a cost increase it should definitely be welcome news given everything else that’s gone on.

What will be particularly interesting is to see how other engines react to this news, whether it be the major ones or the 2nd tier ones, hopefully others will follow suit making Shopping.com a trend-setter, rather than a dissenter.