PPC Dead in Google? You are kidding right?
Filed under Pay Per Click
Google profits soared dived then soared again and soothsayerers are exclaiming that though this stock is gold it must be close to over performing; 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.
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 fun filled revelers with deep pockets stop by on their way to the casino, well are 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.
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.
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.
How about paying 10 dollars per click for the keyword “marketing”? A little too expensive right? ( and broad while you’re at it, lol ) Just 101 clicks later and you have topped the magic thousand dollar mark. I hope you have a real expensive product to sell, ha ha.
Not funny right? But this scenario is being played out all over the pay per click world all day long.
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 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.
Nimbly and joyfully the gang of 40 plus real estate agents in Toronto bid the pricing above the 1 dollar mark, while the Yahoo search costs stayed under 10 cents.
