Upcoming Adwords Changes

Didn't see this posted anywhere else so I figured I'd let ya'll know.

Got the following e-mail from Perry Marshall the other day. Perry is a big follower of adwords and has an ebook on how to use it. Anyhow, here's the info he provided:

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Over the weekend, the AdWords folks
sent out a pretty important notice: The 0.5% Click Thru Rate minimum is effectively going away.

Also going away: the Normal - In Trial - On Hold - Disabled designations. Instead, they'll either be Active or Inactive. And Google will simply tell you how much more you have to bid to become active.

This is going to do two things:

1) The immensely frustrating experience of losing your disabled keywords 'forever' will change. Instead of getting disabled, the minimum bid price will just go UP. So now you've got more than just 1000 impressions to get that pesky thing up and running. In fact, you've got as long as you need, IF you're willing to pay, as long as you're willing to pay.

2) It means that the difference between stupid advertisers, who have money and no brains - and smart advertisers, who use brains instead of brawn - that gap will grow even wider.

This has not yet been implemented, but will be implemented in the next few weeks. So, you ask, is this good, or is it bad?

Simple answer, it's good if you're smart and bad if you're dumb. It also means you can make more mistakes and get away with them, IF you're willing to pay.

It means a few other things, too:

3) The 0.5% minimum effectively is no more. You can show your ads at 0.1% CTR, if you're willing to bid enough.

4) The Five Cent Minimum is going away too.
You can pay as little as 1 cent, IF your CTR is high enough.

5) There are some categories where you can't get a 0.5% minimum because you're targeting a very unique kind of high value customer, different from the guy all the other advertisers are trying to reach. You may be willing to pay a lot for that visitor. If that's you, this could open up some new opportunities.

How this *really* affects you depends on Google's minimum threshold formula. (They're not saying exactly how it works.) There's all sorts of ways they can cook this thing, and we'll just have to wait and see how things change. I'll be watching closely; I've got a lot of campaigns that run at 5 cents, and I'll be especially interested to see how it affects those.

This does put Google in a position of being able to slowly raise the minimum bids, without ever really telling you exactly what they're up to.

Being that they're a public company now, none of this is very surprising, is it?

Regardless of how the exact details play out, AdWords will continue to be a game where the dumb bloke who just walked in off the street pays through the nose... And the educated guys and gals get the sweet deals. The race goes to the swift - and to those who value education.

Stay Tuned,

Perry Marshall

http://perrymarshall.com/google/adwords.htm

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G-Man