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  1. #1
    Internet Cowboy
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    Adwords raising minimum bids
    From the login page:
    In the coming weeks, your keywords will no longer be evaluated as normal, in trial, on hold, or disabled. Instead, your keywords will either be active or inactive, depending on their quality and maximum CPC. Each keyword will be assigned a minimum bid based on its quality. As long as its maximum CPC meets this quality-based minimum bid, your keyword will remain active and trigger ads
    They are setting minimums per keyword now. They sent an e-mail this morning saying they are listening to user suggestions. This was pure spin. I doubt anyone asked them to raise minimums and set a minimum per keyword!


  2. #2
    MasterMike HardwareGeek's Avatar
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    just means more money for google and adsense people

  3. #3
    Moderator MichaelColey's Avatar
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    The way I read it, it will primarily affect keywords that are currently "On Hold" or "In Trial". Instead of not showing, they'll show as long as the bid is high enough.

    If I'm understanding things correctly, the end result will be that ads are shown more often, and ads that get disabled can be reactivated by raising the bid. Yes, this will help Google (by having more ads showing and higher bids), but I think it'll help advertisers even more.
    Michael Coley
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  4. #4
    Lite On The Do, Heavy On The Nuts Donuts's Avatar
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    Managing AdWords has gotten ridiculous with their existing scheme - something had to be done.

    And when you write a new ad and/or a new keyword and the system says "no thanks, we predict that your click thru rate will suck so we're turning off this word even though we never showed a single impression" was getting a lot of users just plain SICK!

  5. #5
    Internet Cowboy
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    One keyword comes to mind in one of my campaigns where it was on hold the moment I placed it. They told me this was because they predicted that it would not get any exposure based on my bid. After a LONG time on the phone the rep did something that changed the status of this word to normal.
    Long story short, this term now gets a 6% CTR with the very same bid I originally placed and has worked its way up the ladder very nicely.
    Google is taking away some of the advantages they offer to smart PPC users by insisting on a higher bid.


  6. #6
    Super Sh!t Stirrer SSanf's Avatar
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    Oh, very darned well. But, does that mean we will get paid more for showing adsense ads?
    Comments are opinion unless otherwise noted. Remember, pillage first. Then burn. Half of all people in the world have IQs under 100. You best learn to trust ol' SSanf!

  7. #7
    notary sojac Herb ԿԬ's Avatar
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    Quote Originally Posted by SSanf
    Oh, very darned well. But, does that mean we will get paid more for showing adsense ads?
    we'll have to ask the stockholders about that.

  8. #8
    Lite On The Do, Heavy On The Nuts Donuts's Avatar
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    Yes. Bids will go up. People who aren't efficient at writing good ads, choosing the right keywords and keyword matching methods and making their ads very relevant to their keywords, can bid their way in. It'll cost them to do it. It'll also cost the efficient PPC'ers more as a result since it's an auction marketplace.

  9. #9
    Lite On The Do, Heavy On The Nuts Donuts's Avatar
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    Impossible to say how much though... could be 2%... could be 20%... and certainly will vary all over the place by keyword (market you advertise in) and a ton of other factors... but generally, I think they'll nudge a tad higher for most people.

  10. #10
    Resident Genius and Staunch Capitalist Leader's Avatar
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    I've got mixed thoughts on this. On one hand, even though I haven't done much bidding in a long time, I've always been a great fan of the concept of being able to buy traffic, regardless of any engine's idea of page or ad "quality." It's a way to avoid the junior-high "popularity contest" crap.

    On the other hand, I think it may end up costing too much to be profitable, with this new system. Especially since they're artifically raising the "floor price" with a system that invents predictions of no clicks.
    There is no knowledge that is not power. ~Hemingway

  11. #11
    Prince of Content Vinny O'Hare's Avatar
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    what about seasonal keywords like "Miss America Pagent" which would be dormant all year except for 3 weeks before hmmmm
    Vinny O'Hare - OPM - Contact Info email: vinny at teamloxly.com ~ 702-582-6742 Twitter

  12. #12
    Member Chocolate_Chicken's Avatar
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    "Yes. Bids will go up"

    Only the ones that are already set for the minimum bid.

    Even if the minimum was changed to one cent, a bid that is a dollar today will still be bid at a dollar tomorrow.

    IMO these PPC joints may very well be chiseling themselves out of millions of dollars by setting higher minimums. The market will bear the same high bids on competitive terms regardless of required minimums, but there are millions upon millions of terms that will not bear a 10 cent minimum.

  13. #13
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    One of the annoying things about a "minimum bid" amount is that it wipes out a large number of small-traffic keyword buys. For example, I might bid on some very specific keyword phrases ("Aerosmith vinyl LP") at a nickel apiece (back in the day, I had 250,000 terms on GoTo.com at one cent each), with no other bidders on those keywords. I assume this is what Google is trying to accommodate by not imposing a single higher "minimum" CPC.

    When GoTo/Overture switched from 1 cent to 5 cent to 10 cent minimum bids, they lost many of my keyword bids.

    Indeed, GoTo/Overture also imposed a "minimum number of searches" criteria for launching new keywords, so that I had more than 500,000 keywords rejected because each one had fewer than a dozen searches in the past month. Think about it: when those terms are actually searched, there are NO PPC ads at all being displayed. I assume that GoTo had some kind of overhead cost that it perceived for maintaining the keyword list (especially as that list had to be propegated across its partner sites), so I don't know if it was as dumb a move as I thought at the time.

    I'm waiting to see what happens to my keyword phrases that are bid at 5 cents. And I hope that the "minimum bid" amounts will adjust downward as well as upward, if conditions justify it. My experience is that idiot-bidders come in for a while, then they run out of money and go away and my 5 cent bids, which slowed in traffic, pick up traffic again if they have not been deactivated.

  14. #14
    ABW Founder Haiko de Poel, Jr.'s Avatar
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    Quote Originally Posted by Chocolate_Chicken
    IMO these PPC joints may very well be chiseling themselves out of millions of dollars by setting higher minimums. The market will bear the same high bids on competitive terms regardless of required minimums, but there are millions upon millions of terms that will not bear a 10 cent minimum.
    Agreed 1,000%!


    I heard/read (mistakenly?) that the minimum increase was for non-related keywords to make the big G more content specific ... was this presented incorrectly?
    Continued Success,

    Haiko
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  15. #15
    Moderator MichaelColey's Avatar
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    From the AdWords Blog, it looks like the change will work both ways. Keywords with really good CTR rates will be able to go as low as $0.01. Keywords with below average CTR rates will have their minimums increase. Most currently active keywords should still remain active at $0.05.
    Michael Coley
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  16. #16
    Lite On The Do, Heavy On The Nuts Donuts's Avatar
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    Quote Originally Posted by Chocolate_Chicken
    "Yes. Bids will go up"

    Only the ones that are already set for the minimum bid.

    Even if the minimum was changed to one cent, a bid that is a dollar today will still be bid at a dollar tomorrow.

    IMO these PPC joints may very well be chiseling themselves out of millions of dollars by setting higher minimums. The market will bear the same high bids on competitive terms regardless of required minimums, but there are millions upon millions of terms that will not bear a 10 cent minimum.
    The higher minimum bid is for someone's keyword that isn't performing well enough today to be shown. So the min bid isn't the same for everyone - it's a custom tailored min bid for each person that weighs how badly your current CTR sucks and then says... here's your minimum. So this isn't about the bottom feeders or bids at the bottom. If someone currently bidding $0.50 is inactive, it may show their min bid as $1.02 - it lets them pay to get in the game. So the bids at a dollar are affected.

  17. #17
    Affiliate Miester my2cents's Avatar
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    I think... that if you are a savey PPC'er and do you homework... there will be little or no increase in your cost to use adwords... but if you're like most users of adwords... those who throw stuff up to see what sticks without doing any research you;ll pay more... alot more... I bet it's as much as 50% more...

    What i like about the idea of the new system.. is my little used "niche" keywords will not get disabled... i just have to be willing to pay enough to get them seen...

    for me any keyword that doest average at least 1% I delete anyway... what i didint like with the current system I never got my min 1000 clicks before my words got diabled... because they used an average of the entire account...

    so many keywords never really got a chance to prove themselves....

    Joe
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    that's my2cents, 'cuz I'm a legend in my own mind....

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