xcoder - 9:52 pm on Oct 19, 2012 (gmt 0) [edited by: xcoder at 9:55 pm (utc) on Oct 19, 2012]
Google may like to think that they are pushing webmasters to Adwords, but the opposite may be happening (though I obviously can't prove it). If my site is eliminated from the SERPS, my revenue drops, and my ad budget goes down. Period. This cumulative effect could account for the drop in click prices (despite an increase in actual clicks).
You are spot on!
The first thing i (and most of my clients) did when revenues started to tank was to review our adwords spending and cut cut cut. I am now spending merely half of what i used to with adwords. There is just not enough revenue coming in.
The smiling panda/penguin pr clown is destroying Google with all them imbecile latest algo twists and its now shows. A real shame really... maybe it is time for him to go.
[edited by: xcoder at 9:55 pm (utc) on Oct 19, 2012]