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Increase in Minimum bid from 5 cents to 10 cents
Will Google Adwords increase the minimum bid.
Qui Gon Jinn




msg:1129840
 6:06 pm on Jan 7, 2005 (gmt 0)

How long do you speculate until Google Adwords increases the minimum bid?

 

FromRocky




msg:1129841
 6:08 pm on Jan 7, 2005 (gmt 0)

Don't ever mention it.

Shak




msg:1129842
 6:11 pm on Jan 7, 2005 (gmt 0)

well I heard ...

but there again, I hear too many things anyway :)

QGJ, you trying to give a hint or a heart attack

Shak

ugamis1




msg:1129843
 6:13 pm on Jan 7, 2005 (gmt 0)

i think they should just raise it to 25 cents personally

=)

poster_boy




msg:1129844
 6:22 pm on Jan 7, 2005 (gmt 0)

How long do you speculate until Google Adwords increases the minimum bid?

I'm not sure this change would benefit Google. There are quite a few keywords that I value between $0.05 and $0.09/click... oftentimes, those are the ones with quite a bit of volume... for my campaigns, these keywords are disabled on Overture, yet continue to run on Google.

Wouldn't Google rather make $0.05 - $0.09/click consistently, rather than a short-term $0.10/click, then nothing?

Qui Gon Jinn




msg:1129845
 6:26 pm on Jan 7, 2005 (gmt 0)

lol - horrible thought isn't it? Kicking them whilst they are down.

Isn't it about squeezing advertisers margins? And a natural progression.

Think of all that unsold ad inventory generally across ppc search engines in general on low to mid ticket items like books, cds etc. Bids should maybe start at absolutely minimum of 1 cent and be permitted to find their natural level.

I can only guess that more affiliate programs may move towards a ppc / cpa hybrid as a result by the insistance of networks to continue their growth & maybe demand by affiliates.

I guess there will be more product search sites developed by affiliates (with assistance from networks) out there directly rivalling Dealtime, Kelkoo & even Froogle etc.

AdWordsAdvisor




msg:1129846
 8:07 pm on Jan 7, 2005 (gmt 0)

Increase in Minimum bid from 5 cents to 10 cents - Will Google Adwords increase the minimum bid.

That would be news to me. ;)

And it's worth saying that at one time the Min CPC was in fact $0.10 - and it was lowered to $0.05 across the board.

AWA

ddogg




msg:1129847
 8:17 pm on Jan 7, 2005 (gmt 0)

I believe Overture hurts themselves because of their minimum bid price. I have literally thousands and thousands of keywords on Google that are 5 cents. If I had to pay 10 they would no longer be profitable and would be deleted (and no I'm not an affiliate ;-)).

It's an auction system, let the market decide the prices :)

figment88




msg:1129848
 8:24 pm on Jan 7, 2005 (gmt 0)

I concur. My spend on overture is minimal compared to what I spend on adwords at an average of $0.07 CPC.

I would estimate my Adwords spend would drop to about 1/12th of its current amount if the minimum was raised to ten cents.

stevenmusumeche




msg:1129849
 8:33 pm on Jan 7, 2005 (gmt 0)

Having a minimum bid of 1 cent makes the most sense, really. Any keyword worth money will be priced based on market demand, so a price floor doesn't help Google at all.

farside847




msg:1129850
 8:49 pm on Jan 7, 2005 (gmt 0)

I second the notion of one cent CPCs.

Tropical Island




msg:1129851
 10:44 pm on Jan 7, 2005 (gmt 0)

We run about 100 keywords at an average of 8. On Over we are down to 32 keywords with an average north of 10 and that's only because we have a number of terms that are grandfathered under 10.

If Google were to increase the minimum we would be forced to drop a bunch of terms.

If anyone should know it would be AWA and as he says he hasn't heard anything about it I would not worry.

I remember when the minimum bids on some of our best keywords were much higher and we were forced out of them. We now received the bulk of our clicks from them at bids higher than the minimum but not as high as Over.

If it's not broke don't touch it!

RichD




msg:1129852
 10:58 pm on Jan 7, 2005 (gmt 0)

That would be news to me. ;)

And it's worth saying that at one time the Min CPC was in fact $0.10 - and it was lowered to $0.05 across the board.

Well it is the equivalent of $0.10 in the UK (0.05) and that does make it unviable for the promotion of low ticket items (like books mentioned above). So what are the chances of bringing accounts inline with $ accounts?
dougs




msg:1129853
 11:07 pm on Jan 7, 2005 (gmt 0)

RichD

Google set a stand, then the currency rates changed. They could change them again and be burnt with another currency change. Currency gambling is not thier business. We buy a huge amount of traffic and any change in google policy makes us reevaluate our whole buying patterns. If they changed them based on currency movements we would probably just stop buying . We could not afford the time and effort to review and ammend the the prices on over 1 million keywords dependent upon currency changes.

Dougs

RichD




msg:1129854
 11:22 pm on Jan 7, 2005 (gmt 0)

So from what you are saying, do you believe they still use the old currency rates when deciding the order of ads in different currencies?

I.e. if a USD advertiser is bidding $1.00, will they show above or below a GBP advertiser bidding 0.60 (currently about $1.14, previously $0.96) if they have equal CTRs?

hdpt00




msg:1129855
 11:34 pm on Jan 7, 2005 (gmt 0)

I know that if Overture changed their min bid to 5 cents they'd be making another 5K off of me every month. Mutliply tat by a ton of publishers who would do the same... I wish they would consider a change...

MovingOnUp




msg:1129856
 2:33 am on Jan 8, 2005 (gmt 0)

I just did an analysis of my AdWords campaigns. Individual campaigns range from $0.05 to $1.70, with the average being $0.14. I have a very large number of keywords in the $0.05 to $0.09 range, but they account for a relatively small percent of my total cost.

Keywords $0.05 to $0.09 account for 69% of my keywords, 48.4% of my clicks, and 21.4% of my costs.

Keywords $0.10 to $0.24 account for 24.1% of my keywords, 35.3% of my clicks, and 35.4% of my costs.

Keywords $0.25 to $0.49 account for 4.5% of my keywords, 14.2% of my clicks, and 33.9% of my costs.

Keywords $0.50 and up account for 2.4% of my keywords, 2.1% of my clicks, and 9.4% of my costs.

If they went to $0.10, they would lose 21.4% of the money they earn from me and I would lose nearly half of my AdWords traffic. Overture.com has already lost that percent of my business, as I can't justify that much for some widgets. (Actually, more... Their interface makes it tougher for me to do some of the things that I can do with AdWords.)

SlimKim




msg:1129857
 12:10 am on Jan 9, 2005 (gmt 0)

At one time we paid quite a bit for penny bids at Overture ... then they jacked up the price 500% to a nickel.

We still made money, having the grandfathered bids in place.

Then came the 10 cent minimum and grandfathered bids went to a nickel.

Today we do a fraction of biz there that we do at Google.

There are a ton of keywords / phrases that don't have advertisers because of the 10 cent minimum. You'd be surprised at how many keywords there are at Google that don't fetch a constant stream of advertisers willing to pay a nickel.

It just don't make good sense.

Another thing, I can name a handful of highly searched for terms (just off the top of my head) that no one can ever meet the Google minimum CTR for.

Since they are popular terms, someone often trys, but they will soon see it won't work. It would be an easy thing to implement a policy for certain keywords ... that if all advertisers regularly fail to meet the needed CTR, then don't require one.

I know the parameters might need a bit better defining and adjustment. But there would definitely be a way to do a better job for ALL parties involved.

We ain't talkin someone getting the short end of the stick. We are talking everybody winning on this one.

: )

Qui Gon Jinn




msg:1129858
 6:06 pm on Jan 9, 2005 (gmt 0)

In an ideal world i speculate that Overture ideally would only want the actual brands or their representative agencies to bid.

Even merchants we have dealt with expressed difficulty with ad acceptence.

Perhaps one of the reasons maybe the load on servers & administration.

Any keyword worth money will be priced based on market demand

Perhaps there is an opportunity in the market for a company to develope this, which would cater for a majority of goods which are sold online.

figment88




msg:1129859
 9:48 pm on Jan 9, 2005 (gmt 0)

Another thing, I can name a handful of highly searched for terms (just off the top of my head) that no one can ever meet the Google minimum CTR for.

That is usually just a problem of people not specifying enought negative keywords.

Syzygy




msg:1129860
 11:55 pm on Jan 9, 2005 (gmt 0)

PPC is a mass market medium. Not in the sense that it gives the big budget advertiser an opportunity to promote to larger segments than they previously thought possible, but in the sense that the mass market itself can afford to advertise through it.

PPC is in it's infancy. To deter the potential of mass market advertisers from trying this new media by increasing min bids is illogical - it's not business sense at all as far as the long term game is concerned.

Most 'traditional' print products were once upon a time financed by the classified advertising that Adwords is now. Once upon a time The Times of London used to carry classified advertising all over its prime slots - the covers.

Google, et al, does just the same at the moment... PPC can't afford to price itself beyond the budgets of those at the bottom level, and those who are yet to try it.

Syzygy

Sweezely




msg:1129861
 1:49 pm on Jan 10, 2005 (gmt 0)

Most 'traditional' print products were once upon a time financed by the classified advertising that Adwords is now. Once upon a time The Times of London used to carry classified advertising all over its prime slots - the covers.

Are you suggesting that sometime in the future, Google won't show PPC listings with the search results, and that adwords will become more like traditional classifieds?

[google.com...]

Kind of like this?

Syzygy




msg:1129862
 4:03 pm on Jan 10, 2005 (gmt 0)

No, Sweezely, I'm referring to the fact that classified ads are cheap (to buy) and on their own are generally more trouble than they are worth (from the publishers perspective).

Put together pages and pages of these low priced ads and all of a sudden you have a page rate higher than a full colour display ad - it's very profitable and it's all about volume.

For all the punters spending their five and six figure sums via adwords, there are millions more to be had in revenues from the millions more who will be spending a bit here and a bit there to attract the customers who click a bit here and click a bit there...

My point is that you can't start squeezing the bottom end of the market when the product (adwords) hasn't even started to realise it's potential yet.

Syzygy

<edit>typo</edit>

[edited by: Syzygy at 4:53 pm (utc) on Jan. 10, 2005]

dougs




msg:1129863
 4:50 pm on Jan 10, 2005 (gmt 0)

So from what you are saying, do you believe they still use the old currency rates when deciding the order of ads in different currencies?
I.e. if a USD advertiser is bidding $1.00, will they show above or below a GBP advertiser bidding 0.60 (currently about $1.14, previously $0.96) if they have equal CTRs?

Interetsing point RichD I have no idea....any ideas on this one

Doug

AdWordsAdvisor




msg:1129864
 6:52 pm on Jan 10, 2005 (gmt 0)

...do you believe they still use the old currency rates when deciding the order of ads in different currencies?

I.e. if a USD advertiser is bidding $1.00, will they show above or below a GBP advertiser bidding 0.60 (currently about $1.14, previously $0.96) if they have equal CTRs?



Interetsing point RichD I have no idea....any ideas on this one

RichD and dougs, I think you'll find the answer to this question in an earlier WebmasterWorld thread, here:

[webmasterworld.com...]

AWA

Just Guessing




msg:1129865
 4:52 pm on Jan 13, 2005 (gmt 0)

So if "Highly exact exchange rates are retrieved daily", why can't the GBP Min CPC be set dynamically to the equivalent of the 0.05 USD Min CPC?

AdWordsAdvisor




msg:1129866
 8:28 pm on Jan 13, 2005 (gmt 0)

So if "Highly exact exchange rates are retrieved daily", why can't the GBP Min CPC be set dynamically to the equivalent of the 0.05 USD Min CPC?

Since the design of the AdWords program is not really within my realm (except as an advisor as to how it could be made more effective), I can only guess that the answer to this resolves around a technical point.

I'd be more than happy to forward your comments to the appropriate team, however, as a suggestion that this is how Min CPC would ideally be set - and will do so this evening.

AWA

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