Pay Per Click Conundrum - Google Got Your Cash ?
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Every month some prognosticator predicts yet again the demise of Google. It seems like a repeat of when they used to say the same about apple. So why would anyone make a statement like this : Don't by Google Advertising!
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 is great for Google is always great for its customers too, right? Well it might be, but it's not the customers feeling the pinch here, it's the advertisers like you and me. Google's Adword system is based on a set of "highest bidder" algorithms.
For those not familiar with how this works, imagine that you typically waste your Saturday afternoons at the local car auctions hoping to pick up a great car for cheap. You know that the fewer people bidding is the better your chance of snaking a prime 4 year old vehicle for a few thousand dollars. On the last bidding day of the season, 10 busloads of rich gamblers stop by to use the bathroom.
One had truly hope that they beeline for the bus doors immediately afterward, because if they wander over to join the auction, the prices of all autos will go up, up, up. And was this good for you or the Auctioneers? You already know the answer to that one.
So a couple hundred heavy pocketed corporate types on their way to the casino, who find themselves coming out of the bathroom and seeing good cars go cheaply might want to wallow in and join the bidding. Well, that's exactly what deep pocketed corporate has done.
If more than a few of those guys don't head right back for the bus, you and your bidding buddies are going to have some cash rich competition who won't even listen and smell the exhaust or kick the tires a bit. They are simply going to stand there and bid.
Deep pocketed bidders without a sense of ROI can bid certain keywords to near unreasonable prices.
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?
Suppose I told you that while a few of us having been noticing this trend lately, that a few guys have been taking action. A few weeks ago, while consulting for a real estate friend, Randy, I noticed that over 40 real estate brokers were bidding in Google for 3 key phrases and almost no one in Yahoo.
By Friday of the same week, Google was reporting over 9,000 searches on just 3 related key phrases - Fly condo, Fly Condos and Fly Condos Toronto.
The difference however, was that as the real estate brokers dumbly - Yes I said it - dumbly and dimly bid the Google cost per click above the 1 dollar mark, the Yahoo per per click cost stayed under 10 cents.
Article Source: Articlelogy.com
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