Really important heads up here, everybody:
In an article on TheStreet.com about Google’s heavily anticipated 3rd quarter earnings report which will be released today, October 18th, a few sentences halfway through the piece really jolted me out of my pre-caffeinated haze:
“Advertisers will now have to pay the highest amount they bid for an ad. Previously, advertisers would get a refund for the amount between what it took to win an ad auction and their bid.
The move is widely expected to boost the amount Google makes on search.”
Not Good from an advertiser or agency POV. This sucks for advertisers and SEM firms unless, maybe, they own enough Google stock to offset the added PPC costs.
My hunch is that it is going to require a lot of report running and meticulous bid tweaking to protect our clients’ PPC budgets from the cost increases that this policy change is going to drive.
I’ll do some more research and add my findings here later.
1 response so far ↓
1 rick // Oct 20, 2007 at 10:13 pm
Wow. Bold move by Google. Others can’t afford to follow suite. Part of their credo is “You can make money without doing evil”. Well, this isn’t exactly an example of doing evil, its’ ‘doing good’ for shareholders at the expense of paying customers.
You must log in to post a comment.