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Digital Epiphanies are all those great ideas that pop into my head and for which I can't stop thinking about until I stop thinking about them.

This blog is an outlet so that ideas can be shared, advanced, criticized and exchanged. So please add your comments and free your trapped parcels of genius by sharing your business ideas. Don’t worry, if somebody actually steals it, starts a business and hits it rich, I’ll buy you a beer.

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6/26/2006

Paid Search Futures Market

Many companies, both large and small, rely on paid search as a critical component of their marketing and advertising strategy. The key to paid search is bidding the optimal price for the right keywords. Companies must actively manage their campaign as keyword prices fluctuate to receive the optimal amount of exposure and manage costs.

There seems to be an opportunity to create a market that allows “investors” to buy search words in advance at set prices and then actively trade these keyword derivatives. This futures market would work as a hedge for companies that want to create stability for their paid search campaigns, and would also create a speculative market in which traders could invest in search terms which they believe will rise in popularity and price in the future.

Not sure if these derivatives would actually need to directly interface through API with Adwords, Yahoo! etc, or could work off of already available data from Google Zeitgeist type search data. Either way, seems like there is a market here just waiting for a marketplace.

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