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They want EUR 40 for 1000 impressions! and they say ctr will be around 4%.
That would be 0.04 per impression and with 4% ctr it's Eur a lotto cents for 1 click.
r they gooing nuts? i get the premium for 0,07 cents per click with normal adwords.
<added>i should really read posts better, as of the 1st you say it will end. ok got it./added>
That is normal sometimes 50 EUR. If you can get the top spot for 7 cents where you are then keep on doing it. For me is is over 1 EUR for the premium spot in adwords so that is why premium ads worked.
You can see the logic though. No expensive account manager and everyone fighting to be at the top in a bidding war...more money for Google.
I am just going to have to put more cash aside for marketing now.
UP - If you are in any of the 1-3 slots you will see a massive jump in CTR.
DOWN - If you got ads promoted to premium it won't be quite as easy to hold that position anymore. (Many advertisers didnt even know you could get up there)
UP - Minimum bids will be .05 for everything since nothing is fathered in now?
DOWN - Be prepared to pay more & take part in more bidding wars.
UP - For 'empty' terms, you can really 'own' them now. This is a big plus.
Far more up than down I think (for the avg advertiser), but much of my spend is on ads that have been promoted, so i'm crossing my fingers.
Very succinct summary. Im the only premium advertiser in my category (besides adwords that rotate up...and ebay/bizrate types) and my costs will definitely go up when merged with adwords.
The real opportunity will be the ability to get top of page on lower performing terms...and pay only when you get results.
General rule of thumb is that premium gets 2x the clickthrough....so the standard for clickthrough minimums on top locations will be lower compared to side location.
Shhh..don't let g___gle adwords editorial see this or the relevancy requirements may go up :)
Part of the problem for Google - I think - is that selling these top 'guaranteed number 1 or 2" spots on a CPM basis is like giving them away for nothing for some words. ie typically/historically - people will only pay say $10 - $50 per thousand impressions for any CPM campaign - irrespective of click through rates.
Being guaranteed the number 1 or 2 spot and paying CPM is actually cheap - if you knew what you were doing. If you can run (a relatively large) campaign on Adwords and can get over 10% ctr - Google Premium CPM is often absolutely cheap! If you struggle with .5% clickthroughs - then PPC is cheapest.
Look at the PPC prices for "gambling" or "hosting" keywords... where people are prepared to pay $US11.99 per click on overture today for the number 1 spot for 'hosting' or $US18.04 for 'casino'... imagine getting those at 'typical' CPM pricing...
Google premium was basically positioned with agencies as text banner ads - ie Google sold these premium positions effectively as text banner ads - I believe - as a 'way in' to the banner ad placement agencies and big corporates - by sell them something they could understand - marketing "impressions" in a fixed position.
Now - by educating the market, changing to the Adwords formula - they get to really 'monetise' these top spots.
Now there's going to be a huge bidding war just like on overture .....be prepared to have your advertising accounts take a hit!
I believe their working it this way:
Sell to an advertiser OR
give to the Highest Adword
However, in search terms where the bid isn't high, NO premiums will show up at all, even if ADWORDS are to the right.
This is why I concentrate on organic SEO with Google, every change that has come out of left field (Yahoo switching to Google, all of the mergers and acquisitions.....THIS) With all of these changes...I'm looking golden :)