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Search Engine Advertising: Difficult sectors

In which industries
is SEA expensive?

The costs for search engine advertising (SEA) are particularly high in the following sectors due to the high level of competition and expensive keywords. However, these investments can be justified by the potential profits and high ROI.

Compare also:
Difficult industries for SEO/search engine optimization

Content

Financial services

  • High CPCs
    Keywords in the financial sector, such as “credit”, “mortgage” or “insurance”, are extremely expensive because the competition is high.
  • Customer acquisition
    Acquiring new customers in this industry is valuable, which justifies the high costs.

Legal advice

  • Competitive intensity
    Law firms often bid high amounts for keywords such as “lawyer”, “legal advice” or “divorce lawyer” in order to appear at the top of the search results.
  • High ROI
    The high costs are offset by the potentially high fees for won cases.

Healthcare

  • Expensive keywords
    Terms such as “dentist”, “surgery” or “health insurance” are in high demand and correspondingly expensive.
  • Regulatory requirements
    Ads must meet strict regulatory requirements, which requires additional resources.
  • Google requirements
    Ads must meet strict Google requirements, which requires additional resources, e.g. when depicting nudity.

Real estate

  • Local target groups
    Real estate agents bid high amounts for local keywords such as “buy house in [city]” or “rental apartment [city]”.
  • Fast ROI
    The high investments in SEA can be quickly amortized through successful real estate sales.

E-Commerce

  • Product variety
    E-commerce websites must advertise for a variety of products and categories, which drives up costs.
  • Conversion optimization
    High costs per click (CPC) are justified by careful conversion optimization to maximize sales.

Travel and tourism industry

  • Seasonality
    Campaigns often have to be adapted at short notice and seasonally, which increases costs.
  • High CPCs
    Keywords such as “flights”, “hotels” or “vacation” are extremely expensive because demand is high.

Technology and software

  • Pressure to innovate
    Constant further development and new products require continuous SEA investments.
  • Expensive keywords
    Terms such as “software solution” or “IT consulting” are cost-intensive because many companies are competing for the same customers.

Education and online courses

  • Growing demand
    The increasing popularity of online education offerings leads to more intense competition and higher SEA costs.
  • Specialized keywords
    Keywords such as “online courses”, “further education” or “distance learning” are expensive because many providers are competing for the same target group.

Luxury goods

  • Exclusive target groups
    Reaching a wealthy and sophisticated target group requires high bids on premium keywords.
  • Brand strength
    Luxury brands invest heavily in SEA to increase their brand presence and win new customers.

Insurances

  • High CPCs
    Keywords such as “car insurance”, “life insurance” or “household insurance” are extremely expensive.
  • Complex products
    Ads must provide detailed information to convince potential customers, which further increases costs.
Carl D. Erling, Berlin, CTO
Carl D. Erling, CTO

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