Is Pay Per Click Advertising in Google Dead ?
Google profits are soaring and pundits are exclaiming that though this stock is gold it must be close to over performing; so why would anyone make a statement like this : PPC on Google is Finished.
In truth, nothing could be further from the truth. Pay per click advertising with google adwords is roaring ahead, much to the chagrin of ask, MSN and the number 2 giant Yahoo. So, if this is truly the case, why how could there be any truth in this unsubstantiated rumor?
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 bus 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?
Perhaps the rumor of the demise of Pay Per Click really applies to the only group actually hurt by Google’s growing popularity – those that find themselves with 3 times as many fierce competitors bidding for the same keywords.
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, thats exactly what deep pocketed corporate has done.
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.
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?
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 just less than 10,000 impressions on just 4 popular search terms. My Yahoo Search marketing account had barely cleared a thousand.
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.
