We use different terms such as Paid Search, SEM, and PPC, etc. for this. Search advertising campaigns drive leads and revenue for the businesses.

a. Competition. Since Pay Per Click has become popular due to its effectiveness, it is competitive and because it is based on competitive bids it can get expensive. CPC/bid inflation has led to some companies reducing PPC activity. Some companies may get involved in bidding wars that drive bids up to an unacceptable-level some phrases such as 'life insurance' may exceed ?500 per click. b. Higher costs than other media. If SEO is effective it will almost always deliver a lower CPC. c. Favours larger brands. For companies with a lower budget or a narrower range of products on which to increase lifetime value it may be not possible to compete. In the past large players have got deals on their media spend through their agencies through, for example, Google Best Practice Funding. d. Complexity of managing large campaigns. PPC is deceptively simple to setup. But to compete effectively, particularly for a large campaign, requires knowledge of best practice which changes as Google and other engines introduce new facilities - see the official update blogs from the search networks to gain an idea. e. Limited reach. Not all searchers will see your ads, since the majority scan and click on the natural listings. Your ad will only reach those who are proactively looking for a product or service, but not those who are unaware of a need. Here display advertising can be used, but the paid search content networks can help here. f. Click fraud. Common in some sectors where competitors or advertisers click on ads when there is no intention to buy.