What Would Google, Adsense & Adwords Do If There Was A National Ad Click Day?

What would Google do if there were a national ad click day–where everyone everywhere clicked on as many online ads as they could that day? Heck, we could even have an international ad click day…that would really mess things up. In fact, why stop with just one day? Let’s make it an ad click week, or month. Would advertisers have to pay for all those clicks or would Google’s “technology” be able to decipher which ones were legit? What about people with Adsense on their blogs? Would those bloggers just get screwed out of those commissions?

I’ll be the first to admit Google has a great search tool. But am I alone in thinking that they have gotten too big for their britches? Think about it. If you have Adsense on your website, you cannot even encourage your visitors to patronize your sponsors. What other business in the world tells their customers  NOT to visit or patronize their advertisers? Has Google ever unveiled or published the technology or algorithm they use to decipher legitimate from fraudulent clicks? Why isn’t it posted on their Adsense site? Who is Google to tell a user whether or not a visitor is legitimate or not? Does’t Google owe it to their advertisers on Adwords as well as their Adsense customers to communicate to them how they are getting paid? If I’m an advertiser, I want quality leads–but I also want as many leads or people looking at my product as possible. If  there were more clicks on ads, the cost per click would go down and actually decrease advertising costs. Google doesn’t want costs to advertisers to decrease because then they can’t gouge them as much. Isn’t price gouging in some industries illegal??? Gasoline comes to mind.

Google’s response might be that by publishing their algorithm that determines click fraud, they would be helping their competitors. Actually, they would be helping the industry as a whole and Their Customers! Google doesn’t want to publish that information because then both advertisers and website publishers would see how royally they are getting ripped off.

Google’s real product is their search engine. I don’t have any problem with them not sharing that information. If they did share their search formulas, and perhaps they already have, most people wouldn’t understand it anyway. Besides, there are only a couple other players in the search market anyway. By not sharing how they determine click fraud, they continue to support their own wide profit margins at the expense of advertisers and website publishers. That makes perfect business sense, as long as you support the idea of price gouging. Maybe the government should look in to whether or not there is any anti-trust stuff going on here.

Fortunately, although a bit late, there are other competitors on the pay per click scene that are emerging. Just to name a few: Bidvertiser, advertising.com, blogads, Adbrite, and Videoegg. Unfortunately, many ad networks follow Google’s lead by not disclosing their margins. Let me be more precise here. I am not asking them to disclose margins–simply publish how click fraud is determined. A publisher can merely compare how much they get paid from one network vs. another. However that can be very time consuming, cumbersome, and expensive.

Google, if you want to do your fans and customers a favor, share with everyone how you determine click fraud. I, for one, would like to encourage my visitors to patronize my advertisers. In the meantime, hopefully  some ad network will emerge with fairness and transparency–something that, in my opinion, Google has not done a good job of.

So what do you think? Should Google tell advertisers and publishers how they determine click fraud? What are the advantages and disadvantages of doing so? Please leave your comments below…

Why Is Pay Per Click PPC Dead?

Is PPC or Pay Per Click dead? If you ask Google, they  may disagree. If you ask some of Google’s competitors, they may disagree. If you’ve ever tried to actually make money from PPC, then you know what I’m talking about.

Let’s do some math. If you go to Google keyword tools, you can easily get an estimate for various keywords. Any keywords with substantial traffic costs 50 cents and up. That means you pay Google 50 cents every time someone clicks on your ad. And, 50 cents is cheap really. You’ll probably pay closer to a dollar–but I’ll be conservative and use 50 cents.

We’ll say you get a good response of 1%. Many marketers close less than 1% of sales. At 1%, that means 1 out of every 100 clicks buys your product. Most online products cost anywhere fro $20-%50. Those 100 clicks cost you $50. So if you close 1%, you are just breaking even. What if you do a little less than 1%? Now you’re losing money. And if your clicks cost more than 50 cents? You’re losing money again. If someone returns your product, you’re losing money.

If you are making money in PPC, then you really don;t need to hear what I’m saying anyway. if you’re losing money in PPC, take another look at the numbers–is it really worth it?

Of course, Google doesn’t mind–they love it when people bid up the price of keywords. Think I’m kidding? try running an ad for” car loan,” or “home loan” or heaven forbid, “mortgage”. Those keywords are pricey.

So what’s a little internet marketer to do? Stay tuned. Check back soon and we’ll inform you of few nice little alternatives…

So what do you think? What has been your experience with Google adwords or other ad networks?

Facebook Gains On Google In PPC

Watch Out Google, Facebook Is Gaining in PPC: ”

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Alex Salkever has written a post on Facebok’s self service CPC platform, which has been getting a lot of traction lately and is largely responsible for the company’s recent boasting about being cash flow positive. From it:

I chatted with nearly two dozen people who are buying ads on Facebook. Many of them are also purchasing ads on Google (GOOG) and other online venues. The overwhelming sentiment? Facebook ads are actually more effective and do a better job of getting them in front of their target audiences.

The piece is worth reading and really contemplating. How many of you use Facebook ads? Do they work better than AdWords?