Observations & predictions about Google's recent behavior

Nji,

Got this email from John, a very astute Roundtable member (he was "Mr. Fishmonger" on my interview with four Intensive grads at http://www.perrymarshall.com/adwords/roundtable):

~~~

Perry,

Over the past couple of weeks, I have been trying to increase my overall
search campaign CTR (which is +3%!) by continuously pausing the high
impression- low CTR keywords from my campaigns. I figured: OK, take out
the dogs that are not a good match for my market, and shoot for 6%, just
to see if I can do it.

What I have found is, I can't do it, no matter how many .5% or less high
impression keywords I cut.

I am still in the 3-4% range.

My theory: Broad Match Keywords are the cause.

Since Google is loosening it's standards, our broad match keywords are
showing up more and more to the unwashed masses, where they are less
relevant, in order for them to keep their click income up. It's like they
are taking our search keyword campaigns, and throwing them into the
content network.

The more keywords you have in a broad match long tail, the easier it is
for Google to justify doing this.

I am going to pause my broad keywords completely in some of my campaigns
to test it.

Any other theories???

John

~~~

John,

I think that is a very sound theory actually. I should blog about this.... I can't think of any other explanation.

Strategy, then:

Broad match in a separate ad group. Makes a lot of sense actually.....

Perry

~~~

Perry,

Early test results show that we were right. CTR is soaring on the exact
and phrase match words. Some broad match keywords have a very high CTR,
while the rest tank.

Google Broad Match = The new Content Network-rebranded, since they weren't
able to make that fly the way they intended to.

Here's to the poor unsuspecting fools out there who are making Google rich.

Talk to you later today...

John

~~~

So let me explain.

The big advertising spenders are spending less with Google. But Google can still hit their revenue targets by making adjustments to their ad formula.

The best way for them to do this is with BROAD MATCH keywords. All they have to do is tweak a number somewhere in their engine and ads will show up more easily for terms that don't match.

So for example let's say you sell red wagons.

Smart advertisers bid on

[red wagon] (exact match only)
"red wagon" (ad shows only for queries that contain this phrase)
red wagon (ad could show for "red toyota station wagon" or any number of other unrelated searches)

Then they watch conversion rates and adjust bids accordingly, to make sure their ROI is solid.

Most people just bid on

red wagon (broad match)

And they get all those kinds of traffic mixed together.

So if Google lowers the quality threshold to get more exposures and clicks, they win and you lose.

I'm telling you, you've got to follow my system and you've got to sleep with one eye open.

Now... let me tell you what this means for Google.

AdGooRoo.com monitors millions of search engine results and they are noting a 54% growth in Google's "first page advertisers" - see http://www.adgooroo.com/blog/ for their full report. They very well may be poised for a record quarter for Q4 2008. That's what I'm predicting.

In any case, Google very much has control of their destiny. But you'd better make sure you're on top of your conversion numbers!

About Managing your Ad Campaigns...

For years I've been saying, managing Google campaigns is one of the hardest things to outsource. It looks like it would be easy, but those Google ads are sooooo close to your customers, it's so intimately intertwined with your core marketing mission, it is VERY difficult to outsource this. The only way to learn to play this game like a true expert is to learn on your own dime.

I got word from another Roundtable member, Jeff Hughes - he went through my very first Bobsled Run in 2005:

He says, "We are currently spending over $200,000/month per month profitably within just Adwords. We easily spend $50,000 per week."

Jeff has really cracked the code on PPC management and he teamed up with Glenn Livingston to form a PPC management company. They are the first company that I've ever been willing to publicly endorse for doing this absolutely mission-critical job for you.

If you think you're too busy to master AdWords, think again. But if you HAVE achieved a level of mastery (that is a requirement by the way) and now you wish to have experts take over the controls, refine what you are doing and keep an eye on the meter for you, I suggest you schedule an interview with Glenn Livingston.

http://www.LivingstonPPC.com/

Stay Sharp.

Perry Marshall


Nji,

It was a gorgeous day in May, and I was in New York City
for Gary Bencivenga's now legendary copywriting seminar. On
a lovely Sunday afternoon, just off Broadway and a few blocks
from Central Park, I was drinking coffee in a donut shop when
two guys struck up a conversation with me.

Turns out one of them is an advertising rep who's #1 competitor
these last few years is Google. How do you sell *against* a
company that's absolutely everywhere?

Well it turns out there are some customers that are very, very
hard to find using Google advertising, and some ways of getting
them that are far better.

Are there some ways of reaching new customers that you're
overlooking? Probably so... get the rest of the story here:

http://perrymarshall.com/google/othermedia.htm

Perry Marshall