For India’s internet companies, advertising on Google is becoming increasingly expensive as more traditional offline businesses are now taking to campaigning on the web.
In the past five years, prices for keywords on Google’s AdWords platform have gone up three to five times in certain verticals. While the bulk of this increase was driven by cash-flush start-ups willing to burn millions to woo customers, prices remain high owing to demand from traditional offline players.
While internet companies have largely cut spending on advertising and customer acquisition, many say the cost of purchasing AdWords has not reduced. The platform, which uses