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Google using conversion data to determine bid price?

         

T_Media

3:33 pm on Mar 7, 2008 (gmt 0)

10+ Year Member



I'm just wondering... I suppose it's a conspiracy. I'm just wondering.

If I use google's in built conversion tracking, then eventually they'll be able to figure out the real worth of a keyword to me and thus they might start charging me more. For example if I were selling widgets at £800 and using google's tracking I figured that it only cost me £5 to get the sale, would it not be in G's best interest to start raing the amount I have to pay per click so they can make more profit?

Google have always been good to me, but it's in their best interest to take advantage and charge me more.

What do you guys think of my conspiracy theory? Has anyone ever experienced huge hikes in bid price after getting a great conversion rate?

Does anyone use any other conversion tracking software? I'd like to know about free downloadable scripts that I can install on my server.

smallcompany

4:51 pm on Mar 7, 2008 (gmt 0)

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



I've never used it.

"Google is smart" has become as old jeans, but it's true, they are smart.

They do stuff seriously, they offer you something, they get you in, and they get the data back. The data that many companies would pay billions for, right?

Some of that data is that what you've mentioned, and yes, that can help Google to determine "realistic" price per click in the case of "keyword 1324".
That theory perfectly fits the recent change in how cost per click gets determined more by your bid, rather then by the bid of the fellow below you. Remember?

So many people see their ad as the only one in he space, and they don't get charged the minimum bid price, but something else. When they phone and ask, they get explanation that is hard to buy. Sometimes it may be true, but not always.

From your post, and from the above, I just can’t stand that anymore. The fact that everyone wants to know everything about me, and eventually use it for their gain.

In Safeway, in the bank, here and there, they all want to know everything about you. Google is the same, except that they don’t count your personal data in.

My shredder has been heavily used for long time. Just not sure how to “shred” this stuff.

I’ve broadened the topic a bit but just wanted to make a connection with what we already know well.

I personally think that Google is using this data. Do they use it purely to “fix” price per click?
Weeeell, maybe not specifically and directly, but still push it into price per click formula, somehow.

Sorry about not knowing anything about other tools.

avalon37

5:15 pm on Mar 7, 2008 (gmt 0)

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



Of course they use the data as a factor in their "smart pricing"...why do you think they push so hard for you to use it? Back in 2002-2004 they called me all the time to implement for my clients; now they have enough people using it in their key verticals that they don't "push" you to use it because they have enough people essentially showing Google their company financials.