Tuesday, December 2, 2008

Pay Per Click Conundrum - Google the cash hole ?

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.

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 car auction if the bidding area was suddenly flooded with triple the number of bidders - stopped off on their way to a casino ? Would the cars be cheaper or more expensive?

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.

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.

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.

Not funny right? But this scenario is being played out all over the pay per click world all day long.

Recently, a few guys came up with a breakthrough. They also claim that after months of testing, Google's adword system proved to be a cash loser for all but a few of their click bank affiliate products. They claim to have found a hack in another search engine and after nearly a half million in revenue are willing declare their test phase is over. Ha ha. They are calling their breakthrough the Yahoo cash machine. You might be surprised specifically at how they did this. Click here to watch their video. - 16747

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