Booster - 8:38 pm on Oct 4, 2007 (gmt 0)

Hi there,

before i start, i must admit i'm a Vendor. i hope you'll be willing to read through and cooperate :-)

i'm working in a company that built a robust solution to optimize NET PROFIT on e-commerce/lead gen/affiliate AdWords campaigns. we are averaging an increase in profits of 30% within 4 weeks.

our main two advantages, as we see it, are (before this optimizer came out...):
1. fully automated decision making system, that chose and perform bids for you and take each keyword to the optimal position (optimal in terms of NET PROFIT).
2. not like most of the optimizing SEMs out there, we do so for every campaign size (although the statistical effect is starting somewhere in the 100 conversions a month per account range) . We take no min. monthly fee or a set up fee. Simply 3% of spend, after our first month free trial.

my questions for you are as follows:

1. do you think pitching for NET PROFIT optimization instead of CPA optimization is appealing? Is the difference clear? Is it understood that having a fixed CPA will not bring you to your max margin overall, since at CPA thinking, you don't consider sales VOLUME, only cost per click VS. conversion rate?
2. Google approach- are they trying to replace SEM companies (service and/or enablers) by giving full solution to their advertisers? or is it just a nice feature they put there and will not improve it further?
3. is there a place for the channel to tell the advertiser how much to pay them? isn't it a conflict if they bid for two direct competitors on the same time?

Thanks for sharing a though, i'm wondering how this will affect us...puzzled

Booster

[edited by: Booster at 8:42 pm (utc) on Oct. 4, 2007]