Google Adds a Few Dollars to AdWords
Some advertisers who buy AdWords with Google are reporting significant increases in their cost of business. Advertisers in several online forums have been reporting increases in the cost to buy AdWords over the last few days. One user reported his cost-per-click price rose 400 percent, while another reported an overnight increase of 2,000 percent. "I've had keyword bids go from 30 cents to $10," read one post. Google announced last week in a blog post that it was making changes to the way it judges the quality of AdWords landing pages. Landing pages are the pages on an advertiser's Web site that a user lands on when clicking through an ad. In that announcement, Google warned that advertisers who are providing a poor user experience on their landing pages may see an increase in their minimum bids. "We realize that some minimum bids may be too high to be cost-effective," the post read in part. "Indeed, these high minimum bids are our way of motivating advertisers to either improve their landing pages or to simply stop using AdWords for those pages." According to a recent report from Perfomics, a unit of DoubleClick, the average price of purchasing keywords decreased in the first quarter of 2006. The average price fell to around $30 in the first quarter, from the yearly high of $59 last December. Year-over-year, cost-per-keyword has remained relatively flat. A few users in search forums have reported that their AdWords expense has decreased since Google's change to the AdWords algorithms. Some advertisers, though, argue that Google should not be allowed to enforce landing page quality. Web site owners, they say, are the best judge of whether their landing pages are useful for would-be consumers. "They need to understand that there are literally dozens of different types of sites," read one post. "By that I mean, dozens of sites have many different purposes and to clump them all into one and do a huge [algorithm] sweep is asinine." |

Comments (6)
Finally a way to end the loops created by sites only featuring Adword links as specialized catalogs on a subject. Well yes, there are thousand of different sites. The better ones get the links
Posted by Augoustinos Kallergis | July 13, 2006 7:41 PM
This is what merchants get for letting Google see their sales conversion data. Google now know exactly how much their wealthier customers make per click and are determind to squeeze out every last cent. The hothoused computer nerds in the Googleplex know a lot about code and nothing whatsoever about business relationships. There is a whole industry who have now lost confindence in them due to repeated mistakes like this - first in the regular listings and now in the commercial listings. Microsoft, Yahoo, Kanoodle and Ask (their commercial search competitors) must be breaking out the champagne today! I have a dozen or so clients I will be migrating over to these alternative platforms this coming week. Even the clients who haven't been hit yet are feeling a little uneasy.
Posted by Icicle | July 13, 2006 11:46 PM
Microsoft wants to remove the inconvenience of spam altogether, whereas Google seems to want to push it onto consumers.
Posted by Google Watch | July 17, 2006 11:02 AM
Microsoft wants to remove the inconvenience of spam altogether, whereas Google seems to want to push it onto consumers.
Posted by Google Watch | July 17, 2006 11:28 AM
Who defines user experience? Google, or Web search users?
Posted by Google Watch | July 24, 2006 8:56 AM
Some AdSense publishers are now using Google advertising inside e-mails and newsletters, say posters on the DigitalPoint forums.
Posted by Google Watch | September 18, 2006 4:15 PM