Google local is killing local adwords

[mrguy]

I’ve got a client that bids in the medical services area. Prior to Google rolling out the local bubble and floating map the covers the ads; they had a very good CTR and conversion rate.

Now that the local display has been rolled out, their adwords CTR has taken a large dive but the funny thing is they rank very well in the organic and show up, so people are now clicking those links instead of the ads because they can no longer see them when scrolling down the page.

I’m not really complaining but was that the intent of this local search thing, to kill the adwords market for it because that is exactly what it’s doing?

[cuiyj]

I don't think so, google will make more profit from better service.

[Lexur]

I don't think so. The real intent of Google is tell to everyone with a B&M business they MUST pay to Google because the big G rules the Internet.
I bet there will be more case like the doctor above than merchants running like fools on the street looking for the closest Google's payment point.

[mrguy]

google will make more profit from better service.

Considering adwords produces the bulk of revenue for Google, I don't see how that applies.

If nobody is clicking the ads because they can't see them, Google is not making money from people clicking the organic listings and if Adwords did not exist, neither would Google at this point.

[RhinoFish]

give the kiddies a few free hits, get 'em hooked.