Captain - 1:24 pm on Aug 16, 2005 (gmt 0)

I am very concerned about the upcoming change.

Let's start with the obvious:

1 >> Looking from a free market economy perspective, if demand exceed supply, prices rise. This is the case from Google's AdWords product. Google is a corporation trying to maximize shareholder investment so they can hardly be to blame.

2 >> This change is going to increases Google's profits a great deal.

Take for EXAMPLE >>

Google drops 5 cent :minimum bid" keywords to 2 cents. On the flip side, Google raises "before change" 5 cent minimum bid keywords to 30 cents minimum.

Google loses 3 cents per click on the "lowered minimum bid" but gains 30 cents per click on the "rasied minimum side".

Result >> This change + the proper algorythm = Cash Cow. Every dollar generated from this "change" drops to their bottom line.

In summary, this change does three things-

1. Enhances the quality of Adwords (higher prices means more selective bidding).

2. Increases revenue for Google.

3. A lot of pissed off advertisers with small budgets, or small margins and affiliates.