August 18, 2005

AdWords New Structure - A New Era

Search Engine CompetitionThe new bid structure recently implemented by Google is already starting to affect pricing and account metrics. Doing searches for general keywords yield more advertisements and it is big companies (or at least companies with the money to spend) that are starting to show up in the top spots.

While this may be a temporary spike in competitive bidding, two things will remain with the new system. The price per click on average will increase and competition will also increase. This will also have the effect of making management of a campaign more complex and create lower tolerances for errors.

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