Google has started rolling out revisions to its Adwords PPC service - today, the results have been widely seen.
Here’s a quote from the Inside Adwords blog at Google:
“From time-to-time, we improve our algorithms for evaluating landing page quality (often based on feedback from our end-users), and next week we’re launching another such improvement. Thus, over the coming days a small number of advertisers who are providing a low quality user experience on their landing pages will see increases in their minimum bids. It is important to note, however, that the vast majority of advertisers will not be affected at all by this change, as they link to quality landing pages.”
Thus far, the changes have meant unmitigated disaster for many Adwords users.
Instead of a “small number of advertisers” seeing minimum bid increases, the reports of horrific bid increases are being WIDELY reported. In many cases, where minimum bids were previously 15- to 30-cents, Google is now asking for minimum bids of $1.00 to $10. Reports of $5 and $10 minimum bids are now increasingly common.
Instead of eliminating “junk” landing pages, Google appears to have effectively priced out volumes of regular high-quality landing pages and even regular merchant pages.
Early media reports have Google trying to end the practice of “Adwords Arbitrage” - the act of using Adwords to drive traffic to landing pages populated with Adsense Ads, in order to profit off the price and revenue differential in certain niches. At best, these media reports are incorrect and short-sighted. All one has to do is spend time at major sites like Webmaster World or Digitalpoint Forums to get a clearer idea of how wide a crater Google has created.
So have the “junk” sites been eliminated from Adwords Ads? All one need do is type in the term “mortgage calculator” in Google and see the results that come up. As of this writing, some of the top Adwords results are for MFA (Made for Adsense) Sites, or paid search engine listings - the very type of sites that Google was trying to eliminate.
After making calls to Google Customer Service, it also became clear that Google had given little to no warning to their reps about this week’s upcoming changes - answers range from complete bewilderment, to the typical “canned” answers read or copied from old scripts.
So, what is an Adwords Advertiser to do? First off, don’t panic. Second, don’t make any radical changes to your campaigns over the next several days at least. In the past, Google has rolled out major Adwords Changes, only to roll them back or retune them significantly. Also, don’t bother calling Google Customer Service over the next couple of days at least - it is clear that there is a major communication disconnect going on internally at Google - calling them now will most likely get you nowhere, and will likely only increase your blood pressure.
Take the next few days and monitor what is going on at the major forums. Will your campaigns take a hit? Most probably. But making rash changes now could further damage your long term income.
Spend some time investigating the alternative PPC networks, Yahoo/Overture and MSN Adcenter.
Lastly, take this time to take stock of your business. If PPC is your sole means of revenue, you need a reality check. Putting all of your eggs in one PPC basket is NOT SMART. Diversify your income sources outside of PPC, so that if one area of your business takes a hit, it does not bring the roof collapsing down around you.
You are diversified, aren’t you???
Mr. P