Tuesday, December 2, 2008

Is Pay Per Click Advertising in Google Dead ?

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.

In truth, nothing could be further from the truth. Pay per click advertising with google adwords is roaring ahead, much to the chagrin of ask, MSN and the number 2 giant Yahoo. So, if this is truly the case, why how could there be any truth in this unsubstantiated rumor?

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?

So now you understand the position of those buying from Google's keyword bidding system. The more competition is the bigger the profit for Google and the more that the bidders get raked over the coals.

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.

If those cash rich players on the way to the local casino actually don't spend all their time in the bathroom, they are likely to bid on a few cars just for the hell of joining a live gambling arena.

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.

Not funny right? But this scenario is being played out all over the pay per click world all day long.

You are not alone. A couple of guys just like you, started experimenting on a "fix" for this some months back. They went back to basics and ran over to the Yahoo network. They were having so much fun "fixing" that they forgot to stop and tell the rest of us - until they had amassed nearly half million in verifiable clickbank sales. Ok, I wont keep you in suspense, click on the Yahoo cash machine here. It's not quite what you may have been thinking, but watch the video. - 15359

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