Tuesday, December 2, 2008

PPC Dead in Google? You are kidding right?

By Trevor Weir

Some pundits are saying that Google Pay Per Click advertising is dead. This is a strange claim when the latest Neilson online results show Google once more pummeling Yahoo, MSN, AOL and ASK. Could this be any further from the truth?

Google accountants, who cheer in glee, as Google revenue continues its relentless climb would not even dignify this with a response. And Yang over at Yahoo, who knows who is eating into his ad share revenue would glumly agree. Google's Adword advertising model is absolutely roaring along.

What is great for Google is always great for its customers too, right? Usually it is, but it's not the customers feeling the pinch here, its the advertisers like you and me. Google's adword system is based on a set of "highest bidder" algorithms.

So now you understand the position of those buying from Google's keyword bidding system. The more competition is the bigger the profit for Google and the more that the bidders get raked over the coals.

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.

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, now you understand what we mean by the death of pay per click? When there are too many bidders bidding for the same set of keywords, the price is going to go up. Some of the bidders will have deep pockets and nothing else.

This indirectly says that many corporate buyers are overbidding keywords because they don't have the time to seriously learn the craft.

Would you pay 9 dollars for the keyword phrase Internet marketing? Most of us would say this is a little pricey. A hundred clicks later, and you are almost at a thousand dollars. With a 3% conversion rate, you would need to be selling a product for 600 dollars at 50% margin just to get close to break even.

Having fun yet?

Suppose I told you that while a few of us having been noticing this trend lately, that two guys decided to do something about it. After a few months of testing and proving out their theory ( and selfishly keeping a half million in profits from something called the Yahoo cash machine ), they have decided to let the rest of us in on the secret. Sound too good to be true? Yeah, perhaps, click here and watch the video to see specifically how they pulled this incredible feat out of Yahoo which most of us had well, almost written off. - 15478

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