Tuesday, December 2, 2008

PPC Dead in Google? You are kidding right?

By Trevor Weir

Google profits are soaring and analysts are saying its stock is close to over perform in this age of stormy stock market upheavals, so why would anyone make a statement like this : Pay per click Advertising in Google is Dead.

Well it could be a little further from the truth, ha ha, but not much. In reality, Google's stock isn't exactly roaring ( nobody's is at the moment ) but the latest online Neilson polls show Google with a commanding 61% of the market place and continuing its slow but relentless climb.

Would Google's popularity hurt the customers? No, its a win win for them with more advertisers, more choices and google pumping more resources into faster servers etc. How would this work at a car auction if the bidding area was suddenly flooded with triple the number of bidders - stopped off on their way to a casino ? Would the cars be cheaper or more expensive?

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.

You better hope that they beeline for the bus afterwards, because if the wander over to join the auction, the prices of all vehicles will go up. And was this good for you or the Auctioneers? You already know the answer to that one.

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, now you understand what we mean by the death of pay per click? When there are too many bidders bidding for the same set of keywords, the price is going to go up. Some of the bidders will have deep pockets and nothing else.

Rich gamblers getting off the bus and bidding on the dream car you have been waiting months to see roll down the auction line is going to make you real happy right?

Would you pay 9 dollars for the keyword phrase Internet marketing? Most of us would say this is a little pricey. A hundred clicks later, and you are almost at a thousand dollars. With a 3% conversion rate, you would need to be selling a product for 600 dollars at 50% margin just to get close to break even.

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. - 15432

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