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 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.

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, perhaps the rumors of the death of Pay Per Click were justified? Google has already said that mom and pop bidders are the most careful and get the highest returns and best ROI.

This indirectly says that many corporate buyers are overbidding keywords because they don't have the time to seriously learn the craft.

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.

Does that sound like fun?

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. - 16039

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