Pay Per Click Conundrum – Google Got Your Cash ?

By Trevor Weir | May 17, 2009

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 : Pay per click Advertising in Google is Dead!

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.

Would Google’s popularity hurt the customers? No, its a win win for them with more advertisers, more choices and Google pumping more resources into faster servers etc. How would this work at a auto or car auction if the bidding area was suddenly flooded with triple the number of bidders. Bidders who perhaps stopped off on their way to a casino ? Would the trucks be cheaper or more expensive?

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, well are your cars going to be auctioned for higher or lower prices?

You better hope that they beeline for the bus doors immediately afterward, because if they wander over to join the auction, the prices of all cars will go up, up, up. And was this good for you or the Auctioneers? You already know the answer to that one.

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, 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 is exactly what happens when many corporate buyers run in and bid up keywords without taking the time to seriously learn the craft.

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.

Does that sound like fun?

Recently, I attempted to help out a real estate friend of mine. His name is Randy. A new condo release had put the marketplace into a frenzy. On Sunday, Google stats said there were too few searches to predict numbers.

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.

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.

Get the latest in pay per click news and articles here at pay per traffic Specialists. And don’t forget Cost Per Action marketing.

categories: Yahoo cash,ppc,pay per click,Google adwords,yahoo advertising,online advertising,home businesses,business

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