Tuesday, December 2, 2008

Pay Per Click Conundrum - Google the cash hole ?

By Trevor Weir

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, what good is it to say that Pay Per Click advertising on Google is dead.

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.

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.

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?

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.

So a couple hundred heavy pocketed corporate types on their way to the casino, who find themselves coming out of the bathroom and seeing good cars go cheaply might want to wallow in and join the bidding. Well, thats exactly what deep pocketed corporate has done.

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.

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.

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. - 15431

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