Friday, May 22, 2009

Is Pay Per Click Advertising in Google Dead ?

by Trevor Weir

Google profits soared dived then soared again and analysts are exclaiming that though this stock is gold it must be close to over performing; so what would justify something like this : PPC on Google is Finished.

Well it could be a little further from the truth, ha ha, but not much. In reality, Google's stock isn't exactly roaring ( nobody's is at the moment ) but the latest online Neilson polls show Google with a commanding 63-71% of the market place and continuing it's slow but relentless climb.

What's good for the goose isn't always good for the gander and in this case what is good for Google hasn't always been good for the advertisers. For those without knowledge of how its done - Google's advertising is done based on a highest bidder system.

If you normally have 1200 potential buyers at your saturday afternoon car auction then one bright saturday afternoon 40 additional truck loads of happy go lucky gamblers stop by on their way to the casino, do you think that your cars going to be auctioned for higher or lower prices?

And who was this good for? The auctioneers or the public attempting to steal a good car cheaply? If you answered the auctioneers, you are absolutely right.

The death of adwords right? Does it make more sense now? The tool becomes less and less useful to you as the price per click skyrockets.

So, perhaps the rumors of the death of Pay Per Click were justified? Google has already said that mom and pop bidders are the most careful and get the highest returns and best ROI. But lately, that could just be because they either aren't bidding or have found somewhere else to bid.

Rich gamblers getting off the bus and bidding on the dream car you have been waiting months to see roll down the auction line is going to make you real happy right?

What is currently happening to many of your campaigns that were turning a fair profit just 4 months ago? How about those absolute winners that you have had running for a couple years? You have adjusted, pruned optimized and now there is very little left you can do. The frustration sets in and you are regretfully pause the campaign. Its now, no longer profitable.

Having fun yet?

You are not alone. In helping a friend with some PPC on Google, I noticed a curious phenomena. Over 40 brokers pushing up the price bidding on three phrases and just one lone broker in yahoo and nobody at all on msn.

By the end of the week, my Google adwords account had recorded over nine thousand impressions on just 3 popular search terms. My yahoo account had barely cleared 1000.

Not only did the competing real estate agents bid the Google prices above the dollar mark, but they also clicked on each others ads by the thousands. I know this because several of them filled in my form after clicking on my ads too. In the meantime, my Yahoo costs stayed serenely under 15 cents per click.

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