Google Says Lowering EPC, Until Competition Arrives

No other program has a spider yet Homer, but they will real soon when Y$ and M$ enter the game and others will also add the same spider bots down the road.

 

More AdWords advertisers helps you as an AdSense publisher more I think. Google alledgedly already pays out up to 80% of our AW bids. If we get more competition when bidding for phrases it will drive up the PPC. That's where you benefit.

 

Only keywords that companies really want bad will go up in price

The majority will come way down as more websites come online everyday, it is a matter of supply and demand and more supply is added everyday, in addition there is no end in site to new blogs, forums, directories and portal sites that magazines and online newspapers put up.

 

That makes no sense at all.

You say correctly, supplu grows. New sites go online every day. New online ventures start every hour. A lot of them will advertise their stuff. AdWords is the #1 online Advertising program by far. So there is an increased number of AW advertisers. The actual phrases the want to trigger their ads doesn't grow as fast as the number of advertisers so more advertisers will be bidding for the same phrase.

There's no other outcome than the bid price going up. More advertisers also means you have a greater chance of not getting your ad on page one. So you HAVE to increase your PPC bids to stay on top.

Higher bids equals higher pay-outs (likely) for AdSense publishers.

 

When I was buying ADWORDS Google wanted me to spend $500.00 a day to get into the top spots, I got there in my keywords for .05 per click and limited my spending to $10.00 a day and never hit that.

So only a few selected words really pay anymore TOPS and you know this, why would Google make the statement they did if this was not the case.

More gas stations force costs down not up, so with more suppliers (Y$ & M$) coming in the game how do you expect prices to go up to publishers?

 

Google's budget recommendation is a joke, we all know that.

Going from just G to G, Y and MSN is only a 300% increase. The pool of online advertisers grows a lot faster than that.

 

You can have a lot of advertisers, but if they are all like me and bid .05 and get to the top with that, how much can publishers expect to make TOPS

 

Read my post above. You getting blind?

If 20 people bif 0.05 that means 8 will be on page 2 and 4 on page 3. They'ss see the crap results soon and bid 0.06. Now we have 8 on page one bidding 0.06. 4 on page 2 bidding 0.06 and 4 on page two bidding 0.5. And some on page 3. Now the 0.06 AND 0.05 people get poor results... So they bid 0.07...

ETC!

 

They won't be like you, big companies with big budgets will/are paying crazy prices for keywords, PPC advertising is still in its infancy.

Yes its about supply and demand as you say in your earlier post Anthony, more web sites are joining publisher programs every day but more businesses are also joining the PPC networks. PPC advertising is still in the introduction/growth stage and I bet less than 1% of businesses use this as an advertising method.

 

Confirmed by their recent SEC filing showing us their growth in revenue from selling their Adspace.

 

Exactly, by the sound of your post Anthony it sounds very much like you dont understand how PPC works, all the 5c keywords are low quality words, how many ebay ads do you see when you search for things like "buy pc's online", "dental care", "car insurance" and "meso (cant spell it)"?

None?

Why?

Because those ads only come up on the 5c keywords.

 

TOPS no matter how you cut it the percentages will go down in the future, not up.

Remember the DOT COM BUST, well AOL, YAHOO and many other companies got hit hard by the last downturn in online advertising. Don't make me pull articles on it because you were around then.

There may be good times at the moment, but don't count on it forever, that is what I am telling you and I think that is what Google mentions in their statement to investors.

I hope that I am wrong so we can all make some money, I have seen what a downturn did in my offline business and it cost me a lot of money.

 

I remember the DOT COM BUST also, venture capitalists throwing millions of £££ at total cr*p, I think people too many people thought the Internet was going to revolutionise just about everything.

I don't see the PPC business model going this way, PPC is one of the easiest advertising methods ever invented, you can track your ROI in real time, something not working? Stop it, somethings working well? Throw more money at it.

 

You're still not reading.

Even if the pay out % goes down, higher PPC bids could still mean increased absolute pay-out to publishers.

I wouldn't be surprised if G, MSN and Y fix the pay out behind the scenes and let exactly happen what I just described - higher PPC bids so they all get more out of it.

 

OK, so everyone of us puts up 20,000 automated pages with some script just to generate content, how is that going to increase payouts

 

I can't see that working really, too many people would be involved in such a highly illegal activity.

Look at other cases of price fixing, usually one of the companies involved in the cartel comes clean about it, the other companies get the most punishment and the company that grasses gets let off lightly.

In the end the other companies lose there reputation and the company which grassed cleans up all the ex customers of the other companies.

 

The laws of supply and demand suggest to us that we should convince more advertisers to sign up for AdWords.

 

You sign up and start the bidding at $5.00 per click Will

 

Adwords blows. I tired it many times and the ROI is bad or you dont get clicks. You're paying for a friggin click! The whole model seems stupid from the outside. Tried everything to make money online. I now make thousands/ month in the internet via adsense, selling the adsense system, selling websites, and various other digital goods. bu it wasn't easy to get started. The internet is far from dead.

 

It really depends on the price point of the product. Adwords can be amazing with some products. I will agree with you if you are selling a $19, or so, product
But if you have to spend $1000 to land a $100000 project it's worth it.