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?

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 61% of the market place and continuing its 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 isn't always good for the advertisers. Google advertising is done based on a bidding system.

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.

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.

If those cash rich players on the way to the local casino actually don't spend all their time in the bathroom, they are likely to bid on a few cars just for the hell of joining a live gambling arena.

If more than a few of those guys don't head right back for the bus, you and your bidding budders 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. Does this sound a little like corporate in the adwords game?

Deep pocketed bidders without a sense of ROI can bid certain keywords to near unreasonable prices.

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. - 16089

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