Ad News

AdLux to enter search market

SYDNEY: Independent search network AdLux will launch this week offering lower cost-per-clicks (CPC) to compete with Google’s AdWords and Yahoo!’s Panama.

AdLux has undergone trials for brands such as Telstra and Dell and is in talks with media agencies ahead of its launch tomorrow (16 March). It aims to offer marketers a credible alternative option to break the stranglehold Google and Yahoo! has on the Australian search market.

AdLux managing director Nicholas Stavropoulos said: “Very little is spent on search in Australia outside Yahoo! and Google. We’re a two-horse town.”The Australian marketplace is lacking options. In the US, you have five or six different places to advertise to get more customers,” he said.

The AdLux network aggregates online publishers including properties from the Ask, LookSmart and Genie Knows partner networks in Australia. It distributes ads on its independent distribution network using the same copy, naming and matching standards as Google’s AdWords and Yahoo!’s Panama. However, AdLux claims its $0.22 average CPC is the lowest in the Australian market.

Mediaedge:cia head of interaction Tim Cooper said, given Google’s monopoly, “it would be hard for AdLux to break into the market, but it would be welcomed from an agency and advertiser perspective”.

“Very little is spent on search in Australia outside Yahoo! and Google. We’re a two-horse town. “The Australian marketplace is lacking options. In the US, you have five or six different places to advertise to get more customers.”
Nicholas Stavropoulos

Razor head of digital Jason Dooris said the agency would consider shifting clients’ search spend to a third provider if it reached an incremental audience. “If there was a rich conversion then we’d have no problem on moving money,” he said.

Group M general manager of search Marcelo Silva agreed shifting search dollars to a third network would depend on incremental audience. “Depending on incremental audience, we would then seek additional budgets or look at an existing budget break-up and plan accordingly” he said. “We’re keen to ascertain if AdLux does provide uniqueness in audience and reach.”