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?

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 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.

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.

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

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.

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.

Having fun yet?

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.

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