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Google IPO and it's effect your our Adwords Costs.

Get ready for a bumpy ride.

         

nyet

12:32 pm on Apr 30, 2004 (gmt 0)

10+ Year Member



Just a guess on my part, but with the announcement of the IPO and all the subsequent press Google and Adwords will get, I think 3 things are likely to happen.

1) Google in general will get more traffic which means more clicks.

2) Potential Investors will 'check out' how adwords works and do a lot of clicking.

3) a lot more people will discover the adwords product and start advertising.

I predict CTR will go up and ROI will go down for the next few months.

shman

12:56 pm on Apr 30, 2004 (gmt 0)

10+ Year Member



Nyet,

I agree with you . Specially those whose ads are in the top three as they will be most visible will get more clicks from those checking adwords out.

ideaguru

1:01 pm on Apr 30, 2004 (gmt 0)

10+ Year Member



[[[1) Google in general will get more traffic which means more clicks. ]]]

I agree...people are always flighty with media exposure, and they will flock to this potential "tech boom" stock sector faster than moths to a burning flame.

[[[2) Potential Investors will 'check out' how adwords works and do a lot of clicking. ]]]

Hmmmm...you know what? I don't think this is too accurate for a couple of reasons. How many overall investors do u think will actually be buying stock? There are millions upon millions of searchs per day. I would hazard to say there will FAR fewer than 1 million potential investors, thus i don't see this being a problem.

Plus, don't you make the most money off non-competitive keywords anyways? If not, you should...it's generally more profitable. :)

[[[3) a lot more people will discover the adwords product and start advertising. ]]]

This, I agree with. People who will invest will undoubtably have some sort of business acumen, or have a network that does.

I suggest for all those PPC bid management companies out there, and related busiensses...to increase your exposure over the next few weeks and months. You'll make a killing!

As for us current unrelenting adword users...we should be okay as long as the newbies give up and go home within a few months ...if not, then I guess we'll have no choice but to work our asses off and expand..which, in my books, is always a good thing anyways.

[[[I predict CTR will go up and ROI will go down for the next few months.]]]

I prefer to think positively. I don't know about you, but my CTR will go up, and my ROI will go up 1500% in the next week.

I promise! :) hehehe...

sdani

1:36 pm on Apr 30, 2004 (gmt 0)

10+ Year Member



I also think that close to IPO date the minimum bid would increase. Google would claim something like this..."When our minimum bid was 5 cents, our revenues were **** million, now we have increased the minimum bid to 10 cents, so taking into account the less number of bids, our revenues will still increase to 1.x times the previous quarter."

This is going to be one of those IPOs which would sell on brand and not many people would do the real math of what would be the impact of increased bid price to number of bids and people would just believe the numbers thrown to them...

Bottomline - I predict that minimum bid would increase close to IPO.

SD