Some Google advertisers cutting spending

Keyword inflation, low conversion rates sending merchants elsewhere

[engine]

A growing number of online advertisers are bidding a partial goodbye to Google Inc.
Frustrated by the soaring price of Internet-search advertising and diminishing returns from the ads they buy, mid-sized advertisers say they plan to reduce how much business they do with Google this year -- in some cases, significantly.
Last year, for example, eBags.com co-founder Peter Cobb spent between $5 million and $8 million to peddle suitcases, handbags and other carrying cases online. Google got 75% of that amount.
But this year it will get "significantly less," Cobb said. "The Google percentage has got to go down," he said.

Some Google advertisers cutting spending [marketwatch.com]

[jtara]

So far, Google has been able to locate additional sources of lemmings willing to jump. So, as advertisers drop-off, other take their place.

At some point, they will have run through all of the potential advertisers, alienating most of them.

[skibum]

There is also a big market out there for people who make sites that convert.