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The answer is probably because Google uses AdSense to monetise natural search results and AdWords to make money from those who can't rank well.
More interesting point is why the company that has got client which pays them $500k per month does not have direct 24/7 phone number to answer _any_ queries they might have? Just how much money one needs to pay Google to have human contact? Only monopoly can act like this - this is all very much like Microsoft of the 90s.
No, he abused the system and got what he deserved.
In what way did he "abuse the system"? He ran a free site, which derived its revenue from ads, and paid to advertise it.
I can agree that Google should have the right to do whatever they want with their system, but it's kind of a stretch to say he was abusing anything.
In what way did he "abuse the system"?
From Google's point of view (I think) he was middleman who was making money off them - they kicked him off AdWords but left AdSense (why not both if he is such an "abuser"?) because Google wants to monetise free natural search listings too, this way share of money that guy got was lower.
Granted I don't like this arbitrage stuff, but the main point of this suit (to me at least) is that Google can say today one thing and tomorrow change their mind, and this change will destroy your business and you won't even have opportunity to make a few phone calls.
However, the way AdWords works, his site, pretty much by definition would have a hard time maintaining a decent quality score.
You've got three elements that have to be in near perfect sync with each other - the keywords in the adgroup, the text of the ad and the landing page.
With a dynamically driven site like this guy has, and with thousands of different types of businesses listed, it'd be more than three full time jobs just writing and managing AdWords ads and campaigns.
** Generic AdWords advertising doesn't work anymore. **
The whole point of quality score is that Google wants to make sure when someone clicks on an ad, he's going to have a pretty good idea going in what he's going to find when he gets there. This article uses the example of ball bearings - well, that would not be a good quality keyword for him, because his site doesn't sell ball bearings. It may provide listings for vendors of ball bearings, but it doesn't offer ball bearings. So the more proper keyword for him would be "ball bearing suppliers" or "ball bearing vendors"
If I'm looking for ball bearings, Google figures I should know ahead of the click whether or not I'm going to a place where I can actually get them, or I'm going to a list of other places that sell them - even if it's a very good, accurate list with reviews and rankings and everything. So his ad would also have to say that he has listings for ball bearing vendors, and not just the ball bearings.
I know it may seem like a nit picking distinction to some, but all my experience tells me this is the way it works, and until you come to that fundamental understanding where you can see the difference, you're always going to struggle with AdWords.
Which is also why I think the program has outgrown a large part of the market it was originally intended for (small business owners who could run it themselves)