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  1. #1
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    What a Screw-Up Google Is
    Does anyone get this new Adwords system - increase your bid to activate the keywords? Nice in theory, maybe, the only problem is they have, for example, deactivated one of my keywords that had a 5% ctr (pretty good in my limited experience with adwords), and now they want me to activate it by paying 4 times the price I currently have set. They've also determined that other keywords aren't doing so well because they have zero clickthroughs ... after TWO IMPRESSIONS! ... I hope all this doesn't screw with my Adsense income as well. If they're messing up my adwords account, I'm sure they're messing up others' as well. I'll definately be checking out Yahoo's new ad system.

  2. #2
    lurk
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    How long has that keyword been being used for that ad? If it's been in the keywords for that particular ad for a while now, it may be a very expensive keyword that your ad doesnt even show up on until the 10th page. That might explain the 2 impressions, and with that they can assume that you aren't paying enough to even get your ad seen.

    This is of course assuming that it is in fact a high paying keyword and that is the situation you are in, but there are many other variables to concider so I may be way off.
    Jason

  3. #3
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    New AdWords minimum bids - disabling the "only bid"
    I thought I understood the concept, but today I have already discovered hundreds of keywords that have been set to inactive, with a higher minimum bid demanded -- despite the fact that I was the ONLY BIDDER on that search term. In other words, I was paying 5 cents per click, and my average position was 1.0. Google has "ejected" the ONLY bidder for those keywords. That seems quite bizarre to me, but maybe I'm missing something here? Maybe they believe that it's worth more to me, and so they're willing to play this game to see if I'll pay more, and if not, maybe they'll re-activate my bid at a nickel in a week or two? Or maybe they'll just hold out and receive NO income on any of these keyword phrases?

    For many other keywords, with average positions between 1 and 2, I am seeing new demands for a minimum bid of .20 or .30 or .40 per click. The "icing on the cake," of course, was finding out that I must now pay 40 cents to have my ad shown when someone searches for MY OWN NAME (again, I am the ONLY bidder on my name -- I was willing to pay a nickel just for the fun of it, but certainly not 40 cents!).

  4. #4
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    Don't see how it could hurt your Adsense revenue. If it does anything, it will help.

    As far as Adwords, i'm going thru now and don't see much i have to up. If I do, that's business. Eventually i think they'll have it minimum 10 cents bids like Overture has had for awhile now.

  5. #5
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    The way I'm thinking it could hurt is a situation like tim-store's ... he's not going to pay the extra, I'm not, and I'm sure a lot of other people won't either. What happens when the number of advertisers goes way down for certain terms? Also, it seems to be aimed at giving an advantage to the big guys, people who can afford to up the bid. There are a lot of little guys who aren't going to be able to compete, including a lot of affiliates who meticulously calculate how much they can pay for a word and can't afford any more.

  6. #6
    ABW Ambassador Nature Boy's Avatar
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    I've got a term that they now want $1 for. Before, I could get a #2 position for 5 cents. Utter bulls#!t. Sorry Google... kiss my butt.

    Just found another one they want $5 for now just to activate it...
    Scott
    If you can't dazzle them with brilliance, then baffle them with bulls#!t
    Don't tell me that you'll do it... SHOW ME.
    Just because everyone else is drinking it is no reason for me to drink the KOOL-AID.

  7. #7
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    Why would higher min. bids favor big guys?
    Trivium wrote (in part): "Also, it seems to be aimed at giving an advantage to the big guys, people who can afford to up the bid. There are a lot of little guys who aren't going to be able to compete, including a lot of affiliates who meticulously calculate how much they can pay for a word and can't afford any more."

    I don't follow the logic, unless when you say "big guys" you just mean "bidders who have more data" or "bidders whose sites have better conversion rates."

    If I am an affiliate of AllWidgets.com, and I have learned that when I bid on searches for "left-handed widget" I consistently see a 5% conversion rate and an average affiliate commission of $10 (e.g. 50 cents earned per click), then I will probably decide that I can pay up to about 45 cents per click. I don't think the math would work differently for a "big guy" -- am I missing something?

    Certainly, if AllWidgets itself (which we assume is a "big guy") knows that it actually earns $20 gross profit per order, then it can pay much more than an affiliate could pay for the same search traffic (in this case, perhaps up to about 90 cents per click).

  8. #8
    lurk
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    This is still new with Google, I am sure they will keep changing things as things go on. If they notice a large decrease in small publishers they will most likely change it to accomodate the smaller guys. Unless they figured that doing what they are doing now will make the big boys pay more which will compensate much more than what they lose from smaller guys. That doesn's seem like something they would do, but who knows.
    Jason

  9. #9
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    Time-store ... yes, the affiliate is the little guy, even if you do pretty well being a little guy. Are those days over? Google often seems hell-bent on eliminating affiliates, whether it's through SERP manipulation or now Adwords. Maybe the theory is to knock the little guys out and charge the big guys more, thereby earning the same obscene amount of money and "cleaning up" the web at the same time by ditching the "trashy" affiliates.

  10. #10
    ABW Ambassador Andy's Avatar
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    Maybe the theory is to knock the little guys out and charge the big guys more, thereby earning the same obscene amount of money and "cleaning up" the web at the same time by ditching the "trashy" affiliates.
    It does seem like Google is after affiliates sometimes, but I know of lots of affiliate sites that are doing better than ever these days.

    Plus, some of those "trashy" affiliate sites are better than the mega $$$ sites that can afford to have nice sites and pay the big bucks for clicks with Google. I think Google is smart enough to realize that there is a place for affiliate sites, and many offer lots of value. To make an attempt to eliminate them would leave a big hole in Google's SERPs, IMHO. Now, those directory sites...they can blast 'em all! Hate 'em!!

    I think Google is just playing around with the policy to see what happens. They have to keep those stockholders happy, you know.

    Andy

    [Edited to correct spelling]

  11. #11
    ABW Ambassador meadowmufn's Avatar
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    I AM noticing a difference in Adsense revenue. Today it's 2/3rds of what it's been every day this month. We'll see if this holds true for the rest of the month. It's not enough to get panicky or peeved yet, but it is disappointing.

    So far the upped bids on the Adwords side haven't affected my ads too much.

    -M

  12. #12
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    Scew google
    I dont like their new s***t system. How am I suppose to bid for word now at 45 cents just for it to be activetaed and on Sunday , I was bidding 10 cents for that same word. Thats bull man, nuff nuff stinking bull.
    Can somebody help me understand the logic over there at google.com/adwords. Since google went public, something went greedy over there. I guess the investors or stake holders saw the eventual demise of google down the road and is doing everything possible to such us dry quiclky
    I had to pause alll my campaigns this morning when I saw the amount of words I have to raise their bids, just to get them activated again.
    Ok, I think overture does not look that bad after all. I have not tried them but now I am considering.
    So someone please help us mortals understand.
    [URL=]http://www.intelefone.net/voipvincent[/URL]

  13. #13
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    meadowmufn wrote (in part): "<i>I AM noticing a difference in Adsense revenue. Today it's 2/3rds of what it's been every day this month.</i>"

    I thought I had noticed the opposite -- a meaningful increase in revenue -- but when I looked back, I realized that the increase was in TRAFFIC, not eCPM (effective CPM, or effective cost per 1,000 pageviews). However, my eCPM is well within the "normal range."

    Google reports my overall average eCPM for August is $2.17 (daily eCPMs ranged from $1.26 to $4.23); yesterday it was $2.00 even.

  14. #14
    Affiliate Manager inflatemouse's Avatar
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    Google is playing a numbers game. After looking through search terms they are taking all of the highly specific, high conversion low impression searches, and raising the bar for the CPC to the same range as the broader high traffic phrases.
    This encourages people to bid on the higher traffic words that don't require the high CPC. The high competition increases Google’s average payment for given terms.
    As a secondary hook anyone staying in the more specific phrases is vulnerable to phrase migration as the larger companies search out "better" keywords. As soon as people flee from over competitive phrases the incumbent bidders will suddenly see their avg CPC jump 2 - 3 times because of new competition.

    Overall this is just an internal strategy for Google to maximize their returns from the program.

  15. #15
    More Cheesier Than Ever Cheesehead's Avatar
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    If lots of google adwords users pause or stop their campaigns, this will be a real downfall for adsense!

    On the other hand, perhaps more keywords will be bid at higher rates so there could be a spillover effect helping adsense.

    Today is too early to tell - this is a state of transition - wait for the dust to settle!

    Given the time, this seems like a very risky move on google's part. If adsense tanks because of this, there will be an exodus to the yahoo program.
    This World is Not My Home
    We're gonna go inside, we're gonna go outside, inside and outside. . . And then we're gonna go go go and we're not gonna stop til we get across that goalline! Quotes from the movie Rudy, 1993

  16. #16
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    "Given the time, this seems like a very risky move on google's part."

    Very true. If Yahoo were smart (and I'm not betting they are), they would take advantage of this with a VERY aggressive campaign to lure Google's business away. I don't think they'll do it though. Yahoo just doesn't seem to be as much on top of the ball as they should and could be.

  17. #17
    Full Member suzie250's Avatar
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    I'm bummin. I sure hope this is better once the dust settles. It has really affected my adsense.

    Yesterday (#of impressions) (#of clicks) = 1.71
    Today (2 x # of impressions) (2 less clicks) = .37

    <sigh> The same (&$^#%@) ads keep showing up. Think there is about 8 total different ones.

    Anybody that has ads that run on my site, you better go raise those bids so I can make some more money!
    I disagree with Kay Jewelers. I would bet on any given Friday or Saturday night more kisses begin with Bud Lite than Kay.

  18. #18
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    Last night, after realizing that the minimum bid was dropped from 5 cents to 1 cent, I went ahead and modified most of my current campaigns, reducing many bids to 1, 2, 3, or 4 cents. This morning, Google reports my average CPC as 3 cents, down from 6 cents yesterday.

    I am conflicted: My AdSense eCPM is down -- $1.33 yesterday, currently standing at $0.35 for the pre-dawn hours today -- which means my AdSense revenue might plummet. Yet my AdWords costs are also down, which should improve overall returns on my AdWords campaigns. (I generally spend roughly the same amount on AdWords each month as I earn from AdSense -- this is coincidence, not strategy -- and so far, it doesn't appear that is likely to change.)

  19. #19
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    If it's true that people's Adsense revenue will fall, then this is a killer for Google (and Yahoo's big chance). Most people out ther don't run Adwords; they only run Adsense (affiliates and such are the exception, of course). Most Adsense users also won't have any idea why their revenue is going down. This might give them the impetus to try Yahoo. Very risky on Google's part indeed. I know they must have some sophisticated number crunchers, but maybe they've eliminated the human element in the equation. Or who knows, maybe it will shake out in the end to be better for everybody.

  20. #20
    Moderator MichaelColey's Avatar
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    I'm not seeing much change with either AdWords or AdSense. I have a few keywords that are under $0.05 now, but most of my keywords have always been higher than that and haven't changed. I've had a few keywords disabled with the change, but I anticipate that I'll pick up quite a few previously disabled keywords once I have a chance to review them.
    Michael Coley
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