Forum Moderators: buckworks & skibum

Message Too Old, No Replies

Google AdWords Pricing Change Goes Into Affect

8/15 1:00pm PT

         

poster_boy

8:26 pm on Aug 15, 2005 (gmt 0)

WebmasterWorld Senior Member 10+ Year Member



I guess it just went through... refreshed and this appeared.

Message:

We've simplified our keyword status system.
Your keywords will now either be active (triggering ads) or inactive (not triggering ads). Quality remains the most important factor in your keywords' performance. Each keyword will now have a minimum bid that is based on the quality of your keyword and ad text. If your maximum CPC doesn't meet this minimum bid, your keyword will be listed as inactive.

What you should do differently:
If a keyword is listed as inactive, improve its quality through optimization, delete it, or raise that keyword's maximum CPC to the minimum bid indicated. (Raising the bid will re-activate the keyword.) If your keyword is active, you don't need to do anything.

m0nty

7:03 am on Aug 24, 2005 (gmt 0)

10+ Year Member



m0nty,

You have made two posts on AdWords forum and both your posts are highly in favorable of the new Algo. All your other posts seem to be in the AdSense and one of them praises how the new Algo is getting more money to the publishers. I can bet a horse's A$$ that you don't have any idea what issues we advertiser's are facing and you are only trying to turn the discussion in Google's favor because it is advantageous to you publishers.

Just remember, Google is becoming more and more greedy. If they are going to take a share of the Advertiser's Pie today, tomorrow it will be a share of the publisher's pie.


I believe that the Google people are smarter than I am, thus when I see something that doesn't quite gel with my preconceptions of how G's systems work, I am quite prepared to start with the assumption that it is my fault for not understanding what G's intentions are, and that if I look at it a bit more (and talk with you people as well) then maybe I can come to a better understanding of what actually underlies this complex system we're all coming to terms with. I am not in the business of jumping to negative conclusions just because I see something that, on the face of it, looks skewed towards one group.

I am giving G the benefit of the doubt, yes, but that doesn't mean I'm wrong.

Bluepixel

8:17 am on Aug 24, 2005 (gmt 0)

10+ Year Member



I can't complain.

All my campaigns have an average CPC of 0.04$. Allthough I'm mostly the only person bidding on those keywords.

soona99

2:34 pm on Aug 24, 2005 (gmt 0)

10+ Year Member



As both a user of Adwords and Adsense I can't understand why some people are saying they're seeing a big increase on the Adsense side. My minimum bid on the Adword side has averaged going from 5cents to 30cents. On the Adsense side (with these same keywords) the price I'm being paid is the same or less than before the big change.

Maybe I should buy some Google stock?

mark1111

6:27 pm on Aug 24, 2005 (gmt 0)

10+ Year Member



this is crazy. i have thousands of keywords. every day something new is being disabled (inactive). i edit my ad and when it doesn't work i give google their required minimum bid to display the ad. then it works, my ad is active again. but when i go back to my ad after an hour or two, google disabled my keywords again and guess what? THEY WANT MORE MONEY! higher minimum bid? come on!

does google want us to have a full-time job of tweaking our keywords?
does google want us to edit our tens of thousands of keywords every minute?

this is ridiculous.


Questions and no answers. You'll notice AWA is nowhere to be seen . . .

jdancing

6:56 pm on Aug 24, 2005 (gmt 0)

WebmasterWorld Senior Member 10+ Year Member




Questions and no answers. You'll notice AWA is nowhere to be seen

Either AWA does not know the answer or knows we will not like the answers.

inferno

8:03 pm on Aug 24, 2005 (gmt 0)

10+ Year Member



the problem comes in (to me) when highly relevant search results, with only you as the advertiser starts costing you 30 cents, 4o cents, 50 cents a click. think about it, if someone goes into google, types in:

[a place to get an oil change and eat a home made cheese cake in podunk kentucky next to a rail road track]

and i am the only advertiser who is there an my ad says something like

Oil Changes in Podunk
Have some cheesecake while you wait
and enjoy the railroad scenery

or something like that, why on earth should i have to pay so much money for finding a highly focused keyword, having a very close ad to match it, and have an awesome ctr for that word?

nothing anyone says is going to make me think that this is anything other than highway robbery.

Shane21

8:12 pm on Aug 24, 2005 (gmt 0)

10+ Year Member



"If a keyword is listed as inactive, improve its quality through optimization"

So if I get a better CTR (optimization!?) on it it's going to go live..but I can't get it live without raising the bid...

Only if I RAISE the bid to the new minimum bid to get it live, will I get a chance to work on the CTR..and if it asks for $2,75 a click, on what used to be a 5c / 5p bid, what am I going to get charged!? the full £2.75?

Has anyone raised their bids to a bid of £2.75 etc. on what was previously a 5c 5p bid? if so what was the damage $£ wise?

I personally am not editing a single bid price to what is requested until I know what the final picture is, .. I'll either spend my budget on my terms at my bids or not at all (with google anyway ;)

Sure google reserve the right to charge what they can but I reserve the right so spend my budget where I want too :)

inferno

1:39 am on Aug 25, 2005 (gmt 0)

10+ Year Member



shane, there is a way around this that i know of, im kind of hesitant to give away secrets that many of us have had to discover thru lots of hard work and such, but let me just say, there is a way around this. experiment a bit, and im sure you will find it.

sailorjwd

2:04 am on Aug 25, 2005 (gmt 0)

WebmasterWorld Senior Member 10+ Year Member



One thing that I have noticed with the new pricing system is that long-lived campaigns are behaving much better than new campaigns in the same subject.

In the old campaign 80% of the keywords require only 5c min bid. Where as in the new campaign 80% require 10c or higher bid.

I'm currently doing an experiment where I'm getting rid of all low CTR keywords and raising the average CTR for each ad group. I hope this will raise my quality score and lower ad cost. Anyone else trying this?

sailorjwd

2:27 am on Aug 25, 2005 (gmt 0)

WebmasterWorld Senior Member 10+ Year Member



Here is an eye opener.

I have a week old ad group consisting of 1598 keywords with a max bid of 6c and 979 were inactive with this bid.

I copied this ad group and placed it in a very old campaign on the same subject and now there are only 94 keywords marked inactive.

nervo

2:47 am on Aug 25, 2005 (gmt 0)

10+ Year Member



Here is an eye opener.

And here's another one ;0
From 600 inactive keywords in an ad, some 300 got reactivated just like that- without any tweaking...

grandpa

5:09 am on Aug 25, 2005 (gmt 0)

WebmasterWorld Senior Member 10+ Year Member Top Contributors Of The Month




3 campaigns(s) are currently inactive.
These campaigns are marked in the status column below. They have been optimized and improved yet still do not satisfy keyword maximum CPCs in many instances. (Deleting the campaigns now may result in long term costs savings and reduce overall advertising headaches.)

ketec

12:31 pm on Aug 25, 2005 (gmt 0)

10+ Year Member



After deciding I was not going to jump at google command, I set all inactive keywords to a max of 10p (bar a few kw's worth more). Iniatially most where inactive but, I though - well there not worth more than that and left them.

After one day a lot of them are now active (no changes this end) and I assume tomorrow more will be.

No one else was advertising on most of the KW so I guess google (well their algo) realised that no ads shown equals no money made. So I assume it progressively lowered the minimum bids - until there where adverts shown.

So be paitient, don't jump to the min - otherwise that's what you'll end up paying. Sit and hold out and it looks like you'll get your way (at least when where there's no other competitors).

IntegraGsrBalla

12:53 pm on Aug 25, 2005 (gmt 0)

10+ Year Member



Im mad about this whole twaeking thing, Im having keywords of a CTR of 6-10% and even plus get marked inactive.

Why tweak your ad and keywords, when they still are all going to be disabled.

I have another question, G wants to make as much money as possible - that is every businesses goal. They have to try to make as much $$$ as possible without making their searches and advertisers unhappy.

Do they want their advertisers to be happy? Do they care about us? After all, we basically are the number one source of their revenue.

IntegraGsrBalla

1:15 pm on Aug 25, 2005 (gmt 0)

10+ Year Member



Wow the $50 grand I already spent this year is about to go to overture and all other PPC companies now.

I swear if they keep asking for money Im done.

Their prices are now higher that overture!

Some of my keywords that NOBODY else is bidding on require a dollar, 2 dollars, or more!

About 2000 of my keywords were at 9 cents, I just raised them to 10 cents and now they want 20 cents.

I like the idea of having more targetted ads, BUT!

GIVE US AN EASIER WAY, SO WE DONT HAVE TO MANUALLY HAVE A DIFFERENT AD GROUP FOR EACH KEYWORD.

GIVE US AN OPTION TO ADD 50 OR 100 AD GROUPS AT A TIME, ALL EXTREMEMLY RELAVENT TO OUR KEYWORDS.

I like to bid on ALL super widgets.

If I want to target searchers more GOOGLE wants me to have seperate ad groups for:

blue super widgets
red super widgets
green super widgets
small super widgets
large super widgets
sour super widgets
medium super widgets
happy super widgets
sad super widgets
little super widgets
mad super widgets
cool super widgets

All with its own ad and text. It would take days or even months to do this if we have 1000's upon 1000's of keywords.

Anyone know of any software that will add dozens and dozens of ad groups at one time?

Geez, now everyone is definitly going to be maxing out their 25 campaigns and and 100 ad groups.

Dr_X

1:24 pm on Aug 25, 2005 (gmt 0)

10+ Year Member



Do they want their advertisers to be happy? Do they care about us? After all, we basically are the number one source of their revenue.

No and No. It does not matter if advertisers are their #1 source of cash. Google has always used a model that focused on making sure the USER gets what he/she is looking for. That is their number one priority. As much as google has been causing me to hate them lately, I still agree with this model. It is the user coming back that will keep the advertisers coming back. Google can piss on us and we can be mad and walk away, never to come back. But there will always be happy users and so there will always be advertisers to take our places.

If the user has a good experience using google, then advertisers be damned. Cold hard fact of life I guess. :-)

-Dr.X

jim2003

1:36 pm on Aug 25, 2005 (gmt 0)

10+ Year Member



Dr. X.

I am happier with the changes than most of the posters to this forum. But I disagree with your supposition. In my view, this change is the first major step Google has taken that is not in the best interest of the end user. The old system of disabling ads, while frustrating to the advertiser, prevent end users from irrelevent ads on a page. The new system says irrelevence is OK, if the advertiser pays enough.

In the long run I suspect that Google will set the minimum price for ads that previously would have been disabled so high, that they will be effectively disabled anyway. Sort of leaving us where we started. But I don't see where this system impacts the user in a favorable way.

Dr_X

1:47 pm on Aug 25, 2005 (gmt 0)

10+ Year Member



jim2003,

I did not say that this latest change helps the user. I was answering the question "Does google care about advertisers". And the answer to that is still "no". Google has never shown an interest in pleasing the advertiser unless it would benifit the user.

I do agree with you about the latest change. In fact, I beleive that the change has nothing to do with pleasing anybody but G. And they can do that. It's their system. We can argue with them about it 'cuz it's our money, but it dosen't mean we'll get our way and it don't mean the user will benifit.

-Dr.X

inferno

8:23 pm on Aug 25, 2005 (gmt 0)

10+ Year Member



this model hurts the end user
this model hurts the advertiser
this model gives google loads of cash if we let it.

have started to switch to overture and other means of advertising. simply put, my conversion rate has dropped dramatically, my impressions have dropped dramatically my ctr has gone down dramatically and my bids have more than quadrupled.

nervo

1:57 am on Aug 26, 2005 (gmt 0)

10+ Year Member



I say don't raise bids, let your inactive keywords to become active again shortly... For the last 24h I've regained additional 20% of my previously inactive keywords.

AlexMiles

8:32 am on Aug 26, 2005 (gmt 0)



My experience has been different to most of yours. I'm from the UK so I've been paying nearly double what everyone in the Land Of The Free gets to pay.

I still get to pay nearly twice as much if I want a 1c keyword, in fact its 2c, but I find those keywords are pretty elusive ayway. So, for the very first time I'm on a level playing field with my competition.

I haven't started any new campaigns, so that might be why I've been spared huge price increases. Instead, I have added thousands of keywords to existing campaigns.

When I saw a lot of my intended keywords had ridiculous prices, I figured that was interesting. I decided unless half my new keywords were inactive from the instant I put them in, I was paying too much for the traffic anyway.

Whaddya know? 24 hours later they are just fine, most of them.

I'm not going to spend more than another day at this though. I thought it was worth gambling three days or so, but as we all know, Google, as a entity, is stark staring bonkers. I'm willing to gamble, at most, one day a month pandering to it. Anything else is commercial suicide.

.

killroy

1:01 pm on Aug 26, 2005 (gmt 0)

WebmasterWorld Senior Member 10+ Year Member



I wanted to add about 8000 products each one add group with 200 keywords usign the API. I realised the quota was just a joke, so I cut it to 1 ad and 5 keywords each.. It only managed about 150 products...

So at this rate it'll take me about 5 years to add my products, and that doesn't include any additional ad text or more keywords...

what a farce!

Oshburg

2:33 pm on Aug 26, 2005 (gmt 0)

10+ Year Member



I have had most of the campaigns remain cost effective as their historical CTR seems to be good enough to keep the cost done. At least that is my impression of why they were not affected by the change. On the other hand I have a new campaign that I started. I have a one word key phrase that is somewhat broad, yet highly targeted for it's audience. G is charging an extremely high CPC for the phrase to remain active. I can understand that since it is a broad phrase it receives a ton of impressions; but there is only one other competitor listed. How does that work out? Shouldn't one of us be able to get a low or minimum CPC for that phrase?

elitec

7:56 pm on Aug 27, 2005 (gmt 0)

10+ Year Member



Normally, I just read posts in this forum, but my fustration with the new adwords system has prompted me to share my latest (of many) bad experiences.

Prior to the new algo I ranked number 1-4 with a very specific keywords in one campaign containing ~10 highly targeted words. My max bid at this time was
10c the new system now decided this was no longer enough cash for G and made these words inactive even though the CTR was about 5%
To activate is was now asking 50c each. In my fustration I was planning on changing these to 55c just to see if I could still somehow make a profit since they were performing well in the past. Even though the product has a small profit margin. However, the next day I logged into my account and realize I had mistakenly changed the max bid to $55.00!

I quickly changed this back after having spent over $800 in clicks in less than a day. Looking at the stats it appears G did charge me from $40.00-$55.00 during this time PER CLICK. I know for a FACT no one is bidding even close to this for these keywords. The MOST would be dollar or so. Now after having changed the PPC back to 55c google has placed me at avg. pos 48! and my ad now gets very few if any impressions. This just confirms the new algo has some serious bugs.

inferno

7:59 pm on Aug 27, 2005 (gmt 0)

10+ Year Member



are there actually 48 other advertisers for those keywords? if not i would call google up, must be a mistake.

dakman

8:26 pm on Aug 27, 2005 (gmt 0)

10+ Year Member



i think people are getting freaked out with the mininum cpc... I noticed on many of my keywords that if google says your min cpc has to be 10 cents alot of the times i pay as little as .01 per click... the min cpc is not what you have to pay per click its just the minimum they require you to bid. most of the time i my min bid may be 10 20 or 30 cents and i will end up paying half or a quarter of that....

NickV

8:58 pm on Aug 27, 2005 (gmt 0)

10+ Year Member



Prior to the new algo I ranked number 1-4 with a very specific keywords in one campaign containing ~10 highly targeted words. My max bid at this time was
10c the new system now decided this was no longer enough cash for G and made these words inactive even though the CTR was about 5%
To activate is was now asking 50c each. In my fustration I was planning on changing these to 55c just to see if I could still somehow make a profit since they were performing well in the past. Even though the product has a small profit margin. However, the next day I logged into my account and realize I had mistakenly changed the max bid to $55.00!

I quickly changed this back after having spent over $800 in clicks in less than a day. Looking at the stats it appears G did charge me from $40.00-$55.00 during this time PER CLICK. I know for a FACT no one is bidding even close to this for these keywords. The MOST would be dollar or so. Now after having changed the PPC back to 55c google has placed me at avg. pos 48! and my ad now gets very few if any impressions. This just confirms the new algo has some serious bugs.

-------------------

Same exact thing happened to me! I bid $25 instead of 0.25. Same effect.

luke175

9:33 pm on Aug 27, 2005 (gmt 0)

10+ Year Member



To those of you saying that you are bidding high but only being charged a smaller amount I do not know what it is you're doing.

I tried bidding $2 on a term to activate it that no one else was bidding on. I logged back on to find multiple $2 clicks.

Makes no sense whatsoever-unless you're Google.

elitec

9:49 pm on Aug 27, 2005 (gmt 0)

10+ Year Member



so basically the new algo is how much can you make G
G will NOT allow you to no longer bid on obscure words unless their making G cash. If you have a 5c keyword that you get clicks/sales and has a high CTR on but if G feels its not worth their time they will tell you to bid more.
I have MANY words that were 5c cpc that NO ONE bid on and this is how I made my ca$h. Now big G expects more cash to enable these if not its not worth their effort to activate. NO matter whats anyone wants to think this is the case.
For those of yo whom wanted to figure out how to make yor keys relivent is is as simple as:
Relivency = money in G pocket.
I beg anyone to tell/show me different!
I can tell you I have spent over 1MIL on G in the past so I know what im talking about.

eyeinthesky

10:36 pm on Aug 27, 2005 (gmt 0)

10+ Year Member




i think people are getting freaked out with the mininum cpc... I noticed on many of my keywords that if google says your min cpc has to be 10 cents alot of the times i pay as little as .01 per click...

According to Google and my own experience, this should not happen. If G says min is 10 cts, then you'll be charged 10cts even if no one else is bidding.

In your case, could it be that the min cpc drops due to increase in quality score?

This 396 message thread spans 14 pages: 396