Monday, 03 May 2010 07:34

Enhanced CPC Beta

Written by Alexi Vontas
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cpcGoogle has released the beta version of a new function in AdWords that will allow historical data to determine how likely a keyword is to result in a conversion and raise your bid for a search on that keyword. They are calling this Enhanced CPC beta.

Users lucky enough to have this function available to them are seeing this as a mixed blessing. Look at it this way… If Google can predict which keywords are more likely to result in a conversion, it is great that they will raise your bid to allow your advert to show higher in CPC results. However, for people advertising more or less the same product, and iPhone for instance, won’t this mean that all your competitors’ bids will also be raise for the high converting keywords, only resulting in inflated earnings for Google?

Also this may mean that your average cost per click may be higher than the amount you set as your Max CPC. All this can result in really, is a shorter lived budget and less traffic, even if you did get the probable conversion. Who’s to say you wouldn’t have received 3 conversions through normal CPC bidding with a lower average CPC and longer lasting budget?

Something else Google could have been kind enough to think about before implementing this functionality it, instead of raising highly probable converting keywords, why could they not have lowered they bids for keywords that are less likely to convert? Oh wait, that would lower their revenue…

I am a firm believer in Google’s technological advancement and am amazed by the authority and status of the company, but I just think there are certain grey areas they like leaving inexperienced users in, and making a lot of money from them making stupid advertising decisions or spending money in AdWords badly. In my opinion Google should be spending more time streamlining and simplifying the AdWords interface, lowering the barrier between them and those too scared to use the system. For the average ametuer AdWords user, it is far too easy to spend heaps of money and not receive one rand back in return. But why would they change that?

See what they have to say… http://adwords.google.com/support/aw/bin/answer.py?hl=en&answer=159957
Last modified on Tuesday, 01 June 2010 07:51
Alexi Vontas

Alexi Vontas

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