Some forecasters are saying that Google’s PPC (Pay Per Click Advertising) is dead. This is a strange claim when the latest Neilson online results show Google once again pummeling Yahoo and MSN in search ratings. So what would justify something like this : PPC on Google is Finished!

Google accountants, who cheer in glee, as Google revenue continues its relentless climb would not even dignify this with a response. And yet Yahoo executives, who know who is eating into their ad share revenue would glumly agree. Google’s Adword advertising model is absolutely roaring along.

Would Google’s popularity hurt the customers? No, its a win win for them with more advertisers, more choices and Google pumping more resources into faster servers etc. How would this work at a auto or car auction if the bidding area was suddenly flooded with triple the number of bidders. Bidders who perhaps stopped off on their way to a casino ? Would the vehicles be cheaper or more expensive?

So now you understand the position of those buying from Google’s keyword bidding system. The more competition is the bigger the profit for Google and the more that the bidders get raked over the coals. And for us poor souls who are purchasing – is the more expensive the cherished keywords get.

And who was this good for? The auctioneers or the public attempting to steal a good car cheaply? If you answered the auctioneers, you are absolutely right.

The death of Adwords right? Does it make more sense now? The tool becomes less and less useful to you as the price per click skyrockets.

So, perhaps the rumors of the death of Pay Per Click were justified? Google has already said that mom and pop bidders are the most careful and get the highest returns and best ROI. But lately, that could just be because they either aren’t bidding or have found somewhere else to bid.

This is exactly what happens when many corporate buyers run in and bid up keywords without taking the time to seriously learn the craft.

How about paying 10 dollars per click for the keyword “marketing”? A little too expensive right? ( and broad while you’re at it, lol ) Just 101 clicks later and you have topped the magic thousand dollar mark. I hope you have a real expensive product to sell, ha ha.

Having fun yet?

Suppose I told you that while a few of us having been noticing this trend lately, that a few guys have been taking action. A few weeks ago, while consulting for a real estate friend, Randy, I noticed that over 40 real estate brokers were bidding in Google for 3 key phrases and almost no one in Yahoo.

By the end of the week, my Google Adwords account had recorded just less than 10,000 impressions on just 4 popular search terms. My Yahoo Search marketing account had barely cleared a thousand.

The difference however, was that as the real estate brokers dumbly – Yes I said it – dumbly and dimly bid the Google cost per click above the 1 dollar mark, the Yahoo per per click cost stayed under 10 cents.

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