U.S. for-profit colleges spend big on marketing while slashing other costs

Google’s biggest advertiser is neither a bank nor a retailer, Reuters reports. It’s the for-profit University of Phoenix, which has recently been spending nearly $400,000 a day on ads, according to search analytics firm SpyFu, more than any financial firm or retailer, the traditional big spenders on online advertising. That kind of spending may seem surprising coming from a college, but marketing has become vital for the university and its for-profit rivals as enrollments plummet and they fight back against a host of criticisms, including low job-placement rates. Colleges such as University of Phoenix, the industry leader owned by Apollo Group Inc, will not only have to boost enrollments to reverse their fortunes, analysts say. They will also need to consider cutting tuition fees as well as continue to slash costs and take market share from rivals…

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