Google API - Charging for usage starting 10/1

We've been wondering when this was going to happen...

[ThreeMikes]

Well, after the big announcement of charging for Google API usage this spring, and then what seemed like an indefinite delay of this rollout, I received notice today that there is a transition in September to this new system ($.25 per 1000 quota units) and charging will begin Oct 1. This is going to add considerable expense (potentially even prohibitive expense?) to businesses developing Adwords management tools (our current api quota of 30M translates to $7500 of cost each month) and I am curious what companies that use the API here think about this?

Also, any thoughts of the effect of this change on the big PPC management players? Is this going to drive down margins, drive up prices, push them back to screen scraping versus using the API?

Mike

[eWhisper]

Just to clear up a few questions real quick:

1. This has nothing todo with the Google Maps API.

2. SOAP is a programming language which can be used to access the Google AdWords API.

If you're using SOAP to access the AdWords API, then yes, it's the same thing. If you're using SOAP to access another Google API, then it's not the same thing. It all depends on which Google API you're accessing.

La_Valette - thanks for running through the math. I always find that numbers only mean so much until you translate them into dollars.

AWA - please include that math in the feedback report this week.

[AdWordsAdvisor]

AWA - please include that math in the feedback report this week.

Consider it done.

AWA

[migriffin]

This will truly hurt our ability to upload advertisements that are specific to the needs of our customers. Limiting the ease of which advertisers may spend money with Google may go down as a major mistake and I urge their competitors to take note of the opportunity. At the very least it seems quite strange that posting new ads and new keywords should incur the largest expenses.

Google, your strategic advantage is the ease of which you allow the long tail to advertise. Why do you want to end that advantage? It's not because you deliver leads with a higher ROI (you're ranked lowest amongst all major search engines on average). It's because Adwords is easy, scalable, and reasonably profitable. Your first intuition is always a better one. I'd stick with it and we'll stick with you.

I truly believe that the current quota system with an option to pay for additional access is a fair option. Granted some people abuse the current system, but most just use it to make their advertising easier and more relevant to the end consumer.