Tier 2 PPC providers are midsized players that have a decent market share and are not concentrated on a certain niche industry or very specific geographic area. The tier 2 pay per click engines include such companies as FindWhat and its daughter company Espotting Media, as well as Enhance Interactive, ePilot and Kanoodle. Many of these players are as good as the Tier 1 PPC providers in many areas, but they lack in certain elements compared to Google Adwords and Overture.
The size of the distribution network is one of the biggest obstacles that the Tier 2 providers have to face. With Google, Yahoo! and MSN dominating a lion share of the search market, the search traffic on other search sites is insufficient for exponential growth of the smaller PPC providers. As a result of the relatively small slice of the market, it is more difficult for the Tier 2 players to obtain advertisers. Advertisers may be reluctant to use these search providers for their keyword advertising, because of the low amount of ad impressions, which subsequently leads to a low amount of clicks. For many advertisers, setting up the account on a Tier 2 PPC engine is not worth the effort.
Another aspect that advertisers may find inconvenient is the technical inadequacies of the Tier 2 pay per click engines. While Google and Overture employ rather sophisticated techniques in the advertiser control panel, the smaller PPC engines may lack resources to build such applications.
The biggest advantage that the Tier 2 PPC engines possess over the Tier 1 providers is the relatively small bid amount for search terms. A search term may cost more than ten times in Google and Overture, compared to the smaller PPC engines. Consequently, enticing advertisers to bid on terms on the PPC engines of the Tier 2 players becomes an easier task.