Is Adwords Dead? Is it Dieing? Is CPC dead?

[tb2135]

I have been using Adwords for over 2 years. Our sales, since April have dropped 50%. My competition has dropped their prices dramatically thinking this is the problem.

I am getting tons of clicks, and a CTR % or 5%-15% on most keywords.

My conversion now stinks. Last year at this time, I was getting a sale every 4-5 clicks. Now, it could get 100 clicks without a sale.

My ads are VERY specific, including price. I know for a FACT I am getting fraudulant clicks. But is this really the problem?

The news is not any better for Overture (which fake clicks are much worse).

I feel that maybe CPC as a whole is dead because of dishonest merchants.

Anyone have any comments?

[blaze]

The advertiser defines what a conversion is.

If the advertiser does not pay out on a conversion, then the advertiser does not get ranked and does not get in rotation for impressions / clicks.

This is what pay per click is already, except that Google does not have enough granular insight to determine if one click is more valuable than another, except on the basis of keywords.

The advertiser will define what a conversion is (PPV>2, clicked on a contact form, etc) and then pay out on the basis of that.

If the advertiser is not paying out enough, then the CPC * CTR will keep him at a low rank and they will be "at risk" for that keyword.

[roitracker]

If Google brings pay-per-conversion into play, they'll lose control of AdWords. While good in theory, there are far too many external factors (that influence conversion) that would be out of G's control, not least the advertiser's website. It would certainly be fraught with problems.

On a side note...

Clickthrough tracking is such a bad way to measure brand advertising

I agree. However, brand advertising is really just another way of saying "we can't measure it, but keep paying us anyway because you just need to get your name out there".

Q. How many advertising companies actually advertise?
A. None. They use telemarketers.

Does this not tell you something? The branding argument doesn't wash any more.