Small businesses are especially close to my heart. When he retired from teaching, my father ran a small art company in Maine, and I saw firsthand how fulfilling — and how difficult — it was for him to realize his dream of running his own business. Unfortunately, his business closed its doors after just a few years. His key challenge: attracting qualified customers.

Many new businesses face similar challenges, but the power of technology can help business owners find the customers they need. Whether you’re a fledgling entrepreneur trying to turn your passion into a profit or an established enterprise trying to get to the next level, Internet tools like Google AdWords are the key to being there when customers come looking for you online.

To show what’s possible, we invited 53-year-old Jay Berkowitz to share his experience creating a business and using AdWords to help it flourish. Here’s what Jay has to say:

Like most first-time parents, my life completely changed when my daughter Hillary was born in 1993. My wife Janet and I decided that one of us should stay at home to care for her while the other continued working full time. Janet kept her engineering job, and I ended up quitting my job as a Wall Street bond analyst to become Mr. Mom.

Later, when Hillary started school, I had more free time. It seemed like the perfect chance to do something I’d always dreamed of: launch my own business and work for myself. I started selling themed plates and lunchboxes at New York City street fairs. Then in 2001, eight-year-old Hillary showed me (her non-tech-savvy dad) how to turn on a computer. That was the beginning of taking the business online, and realizing a whole new world of possibility. Janet and I worked together to build a website,PlatesPlus4Kids.com, and we started advertising online with Google AdWords. Soon, my little project became a full-fledged venture.

By advertising on the Internet, I was able to reach interested customers not only in my area, but all over the country. More and more people found my store through online searches. In no time, I had so many orders that I could no longer keep my inventory of themed cups, plates and lunchboxes on the kitchen table. The stock moved to the den, then the basement, and finally to a warehouse 20 minutes from our house in Little Neck, New York. Over the years, I’ve also expanded my product line and now offer children’s backpacks, umbrellas, flatware, snack containers and sandwich boxes. What started as a hobby now brings in about $500,000 in sales annually.

I only pay when people click on my ad and go to my website, so the cost of marketing is within my means. I increase the budget during the back-to-school season and the holidays (my peak periods) so my ads show above the search results during those times. I’ve also noticed that customers seem to be in a shopping mood on Mondays and Tuesdays, so I sometimes increase my budget on those days to make sure my ads show up more. Depending on trends, I create new ads to promote different characters and new inventory. For example, now that Yo Gabba Gabba is popular andbaseball season is starting, I’m making adjustments so that those phrases combined with words like “dishes,” “placemats” and “cups” trigger my ads. And of course, I have ads that mention items with princesses and superheroes — those are top sellers year-round.

What’s really great is that even though my business has expanded over the past seven years, it’s still a small family company. Two people work for me at the warehouse, but I work from home. Janet takes pictures of the products and works on the website on the weekends. I’ve had the freedom to be a hands-on parent to Hillary and the privilege of helping other parents connect with their kids through my store. Certain celebrity parents have found me through my AdWords ads and bought items for their kids.

I consider myself a pretty ordinary guy. When I started PlatesPlus for Kids, I had no idea it would become what it is today. It’s heartening to know that by following your gut and putting in a lot of hard work, you can find a fulfilling second career. Or maybe a first one.

Posted by Claire Johnson, Vice President, Online Sales and Operations, Advertising Programs

Source: http://googleblog.blogspot.com/2010/04/it-takes-one-to-show-one-getting.html

Keen to know more about Adwords? Let us tell you more here: PPC Singapore

To find out how you can get yourself more business from Google Adwords immediately, contact us at tel: +65 94500295 or http://www.advantageseo.sg/contact-us

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To help new advertisers get past many of the gotchas we created the Google AdWords tax calculator – a free utility which highlights many stumbling blocks that catch new AdWords advertisers.

Given that each keyword market is unique it would be impossible to make a tool that was 100% accurate in every situation, but the goal of this tool was to simply highlight common issues, and help new advertisers address them. Individual efficiency gains may be greater or smaller than the rough initial estimates the tool provides.

Please let us know what you think, as we will gladly iterate this calculator to make it better if you have some great ideas you think we should include in it. Like all of Google’s products, our calculator is starting out in beta

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AdWords’ product extensions let  you use your existing Google Merchant Center account for highlighting products directly in search ads, so that when your AdWords text ad appears and your Google Merchant Center account contains products that are relevant to the searcher’s query, it will display images, titles and prices of your products in what Google calls as plusbox located under your ad.

Succesful transactions resulting from AdWords product extensions are charged to your account on a cost-per-click basis. Meaning you won’t be charged if a user simply expands the plusbox and did not click through your site. Product extensions could improve your ads’ CTR (clickthrough rate).

In addition, since product extensions are charged on a CPC basis, it will only display if your ad is triggered by one of the keywords in your product extensions enabled campaign. You can even select which products are to be displayed when a user’s query triggers your ads.

To add product extensions to your Google AdWords ads, simply log in to Google Merchant Center and add your AdWords customer ID to your Account. Then visit the campaign settings tab under your AdWords account and click on the “Ad extensions” option. You will then nee to select “Use product images and information from my Google Merchant Center account.

Check out the SEO Tools guide at Search Engine Journal.

Product Extensions for U.S. AdWords Advertisers

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The numbers are still significantly down from the same period last year, but any increase is a good sign of things to come. There has been a 5.4% decline from last year.

“The Internet has transformed the consumer experience of media, providing marketers with unprecedented opportunities to engage with their customers,” said Randall Rothenberg, President and CEO of the IAB. “The advertising sector overall has been hard hit by the economy, but digital media has been a bright spot within the larger economic downturn as it is capturing an ever-increasing piece of marketers’ advertising spend.”

“While all segments of the media industry have experienced declines, online advertising remains resilient and is once again showing signs of growth,” said David Silverman, a partner at PricewaterhouseCoopers LLP.

The information from the IAB/PWC is considered the most accurate measurement of interactive ad revenue, the IAB says, because its compiled directly from info supplied by companies selling advertising on the web. The IAB releases a full report twice a year to reflect half-year periods. It will be interesting to see how the second half of the year plays out in its entirety.

Related Articles:

> Online Advertising is Having a Big Year

> Online Ad Revenue Tops $10 Billion

> IAB Releases Ad Unit Guidelines Update

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Similarly, the flow of advertiser dollars from other channels into paid search platforms like Google AdWords has been predictable over time because of one factor: measurable performance when compared head-to-head with other channels.

In accounts where that condition hasn’t been satisfied, companies don’t increase budgets for paid search. They don’t always shut off their accounts, though. So the end result is an account that sort of wanders along, hoping for the best, performing far below potential.

At different points in time, this state of affairs might benefit Google a lot or a little. The times when it benefited Google less were when their relevancy incentives (mostly CTR-based) were set in a dogmatic sort of way. If your account was really lazily and loosely targeted, eventually stuff would get “disabled” or “deactivated.” That would kill volume for you, but you were probably doing horribly anyway, so it was actually a savings. Google, meanwhile, didn’t get to exact as much of an “idiot tax” out of you. So they had to rely on other mechanisms, such as ego bidding or a hot economy, to further their profitability.

It’s not quite like that now. Google has a sophisticated set of mechanisms for selectively allowing you to screw things up. They may not particularly like your fuzzily-targeted ads, but they’re willing to show a certain percentage of them in certain verticals as long as your bids are sky high.

The end result of a low-volume, fuzzily-managed campaign, of course, is a poor ROI for the advertiser. But here’s the curious thing. If the company has invested something in people and plans to run ads in this channel, they don’t shut it off completely. They treat it like their other underperforming channels: shrug their shoulders, hope it gets better, turn the budget down a bit so it doesn’t cause significant harm. From day one, I’ve suggested that this isn’t a true savings, but a squandering of potential. “All in” or “all out” should be the advertiser’s mentality. It is difficult, but not impossible, to optimize your campaign so that increasing the budget is feasible. If that’s not happening, why run it at all?

The fuzzy, meandering, high-CPC-low-return campaign is not a negative scenario – short term – for Google’s revenues and profits. These inefficient campaigns collectively spend heavily, smoothing out the ups and downs of the keyword auctions where advertisers are managing more tightly to customer responses. That’s one of the reasons why, in the near term, Google’s revenues will continue to rise gradually or at least be flat, avoiding the severe hits that other advertising media have taken during the recession. Look for proof of this with Google’s upcoming Q3 2009 earnings release on October 15.

At Page Zero Media we inherit such accounts fairly often. There are two common targeting errors that companies make in the early days of planning AdWords campaigns:

(1) Loose and broad targeting, particularly of the type that addresses a mass market when you’re going for a niche market. A company will say to themselves (perhaps having watched Conrad Hilton in Mad Men saying he wants to put a Hilton “on the moon”): “We want someday to be the biggest and best insurance company in the world!” But for now, they’re just focusing on being top-of-mind in car insurance for high-risk drivers, especially those under the age of 25. Somewhere along the line, possibly in a text message from a golf banquet with impressive friends, the CEO forced the associate to the assistant marketing director to try broad matches for the words “insurance” and “car insurance” in the campaign. They’re still eking along, in select markets, costing the company $18 per click whenever they are clicked, eating into the allotted budget for all the good stuff.

(2) Insider thinking. Companies get into their own jargon, right down into the regulatory mumbo-jumbo from arguments in Congress about all the players in their industry. The next thing you know, there are ad groups containing all the jargon about high-risk drivers — jargon that’s only ever come up in those Congress debates, in board meetings, and expensive consulting reports. People click on the ads occasionally, but they’re inevitably just looking for information, not a car insurance vendor.

As these cardinal errors continue to eat away at the overall budget, the ROI for the whole campaign looks poor. The budget stays where it is. And the company concludes that the channel doesn’t match the hype.

–

I got a note from a colleague who has spent years building out paid search campaigns that have formerly failed for the above reasons. Here’s his tale of woe – the industry sector changed to protect the innocent:

If I can lend a “yes this is the way it works” rule to any PPC work for [insurance] that we should inscribe into our core being: Seth Godin needs to be read by every one of the people who do campaigns for them. Most of the time (probably CEO driven) they focus on the whole “getting their name out there” thing. Each new one I see is a broad, undisciplined mess. They constantly target information seekers with words like “best insurance” or “top insurance companies”. The people who click those 1) Already have a vendor and are satisfied with them; and 2) Are simply looking for ideas; 3) In no way are targeted properly. The kicker is that those words are $5, $6, or $10 a click. They might as well spend that money on a TV commercial because that is akin to interruption marketing, PPC style. You can get fooled as well, because if someone has an article on top insurance companies on their site, like our client does, people will read it and stay. The bounce numbers tend to be pretty low, so if you are looking at that only, you get a false sense that the words are working. But when you look at signups, they are very close to 0%. I am not sure many of them do it, but content and blogs should be king for these sites, for those words; and they should spend that money on writing content. If you have and write articles based on all the key buzzwords like “car insurance comparison”, you should get bang for that on organic search for $0. Example: “Best [(competing but ultimately very different type of) insurance]” and so on. Our new client spent $22,000 on those words via adwords. They got one person to sign up for an account. ONE! [Edit: we did more checking, and it might have been two.] Conversely: Targeted to their selling proposition of [doing more research on individuals in high risk insurance categories to offer them a break on rates if possible], those words [all having to do with insurance rates, unfair insurance rates, demographics of insurance rates] and so on, with a good ad, had $4000 spent and they got 20 people to sign up. OK, long story short: For financial services, not unlike others but especially for them, being targeted to exactly what you do if you are spending $4 a click or more is so vital it is not funny.

–

Google has worked themselves into a situation where the “idiot tax” helps Google’s bottom line. So although they’d prefer it if most advertisers improved the relevancy of their advertising, the current system is built to hedge against idiocy. That being said, then, Google doesn’t stand to gain a whole lot as advertisers become savvier and more efficient. In the past, the genius of the ad platform meant that Google’s earnings and profits raced ahead faster than expected. During the recession, they’re outperforming everyone else. But as the economy recovers, this current efficiency also means that you may not see Google grow as fast as you expect. They’ve wrung a lot of cash out of relatively wasteful advertising. Less wasteful practices will definitely help individual advertisers… a lot. They won’t help Google nearly as much.

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There are many ways to optimize paid search performance. I favor an integrated array of techniques, heavy on response testing.

But the “old school” concept of finding “sweet spots” in the auction, keyword by keyword, is a nice way to do a little extra legwork to decide whether to bid higher or lower in certain instances.

It’s not always a good idea to look for so-called sweet spots, as some formal academic theory might suggest that in many cases, especially if you use enough automation, there aren’t any. But the ideal world aside, it might be nice to know if there are a lot of “bids overhanging the market,” as they say in the financial world. If a keyword auction is particularly “busy” above your bid, then you’ll have to raise your bid an awful lot for little improvement in volume.

On the other hand, if you’re stuck in between a couple of bidders but there isn’t much activity above or below them, I consider those auctions to be more “pliable.” You could go up a bit in your bid and reap volume associated with higher ad positions on that keyword. You could go down a lot and not lose too much volume (with the caveat that Google is under no obligation to serve your ad in every auction if your quality score won’t support low bids, so lowball bidding can reduce volume if Google really doesn’t want your dime that day). The more pliable the auction, hypothetically the more room you have to pick a bid strategy that suits you.

Case by case, it gets interesting. Take, for example, an account where you figure you’ve done a great job whittling average CPC’s down to 23 cents. Now on a lot of the keywords that you’re getting for 15 cents, you’re not doing great ROI-wise, but you’re reasonably content since the price is low by historic and industry standards, you don’t feel like risking the effort to go down to 11 cents.

I think the bid simulator may be helpful in helping advertisers decide when to take risks like that. Shaving those few pennies on lukewarm keywords, across several hundred keywords and a thousand clicks a day, can add up to a lot of saved cash you can then turn around and devote to better performing keywords or channels (or simply, profitability).

I’m told that the Bid Simulator is now in limited release. So despite the fact that you may see it in your account or several client accounts right now, it’s not in full release by any means. Its impact on Google’s revenues, and advertiser performance, isn’t likely to be felt until 2010.

“Old school” PPC auction jockeying may not be everyone’s idea of fun – but different strokes for different folks. We’re also keenly interested in when Bid Simulator data might be available through the AdWords API. This might be helpful for (for example) running dramatic one-day volume tests across an account, based on more keyword-by-keyword auction intelligence to help decide where to shake things up.

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You can use the Wonder Wheel to quickly build keyword lists and Adwords groups in a visual way. With this tool, Google shows you the terms that relate most closely to your chosen keyword terms.

What Is The Google Wonder Wheel?

The Google Wonder Wheel is an interactive graphical application that shows related keywords.

The wheel starts with your keyword in the center, and shows terms related to that keyword in the “spokes” surrounding your keyword “hub”. If you click on a related term, the wheel creates a new hub, revealing more related terms.

Here’s how to find it:

1. Search on a keyword term.

2. Select “More Options…”

3. Click “Wonder Wheel”

Let’s say your main keyword area is “culinary schools”. The Google wheel suggests related keyword terms such as “culinary arts”, “pastry schools”, “le cordon bleu”, “top 10 culinary schools”, and so on.

These keywords become your Adwords groups. Next, click on each of those terms, and you get further terms that will make up each group.

Easy, huh.

You get Adwords groups built around related keywords, which come together to form a theme.

Themes And The Content Network

The theme is particularly powerful when it comes to the Google Content Network.

The Content Network is Google’s syndicated advertising network. You can choose to have your ad appear not just on Google search results, but also on sites across the Google’s Adsense partner network. This option is turned on by default whenever you create an Adwords campaign.

Traditionally, many Adwords advertisers have turned off the content network because of perceived abuse and junk traffic. However, attitudes are changing as the network matures and the bid prices on Google’s search engine head into the stratosphere. The ROI from the content network starts to look more appealing.

It all comes down to ROI. If it’s positive, run with it.

In Google’s whitepaper entitled “CPA Perfomance Trends on the Google Content Network“, Google found that:

…..half of the advertisers had a Content Network CPA at least 2.6% lower
than their average Search Network CPA. In total, 51.6% of advertisers analyzed had an average Content Network CPA equal to or better than their Search Network CPA

It has taken a while, but it looks like Google and advertisers may have got Google’s content network figured out. As the report suggests, it is important that the advertiser pay close attention to landing page optimization and site exclusion.

How does this all relate to the Wonder Wheel?

When Google looks to place your ad across the network, it does so based on themes.

If you use terms that are defined as being related in the Wonder Wheel throughout your text, particularly in your ad groups, you’re more likely to show up on relevant sites across the network.

Google describe this affect on their Adwords Agency blog:

One particularly useful application of the tool is to identify new ad group themes for content campaigns. Since your ads are matched to publisher pages at the ad group level, creating different ad group themes helps you target your ads more precisely on the Google content network…..

You can then use the Google keyword tool, and your other favorite research tools, to flesh these groups out further.

As the blog notes, this is no guarantee of better performance, however the Wonder Wheel is a great – and fun – place to start.

Other attempts at keyword clustering can also be useful for campaign creation. Such features are offered via search suggestions on major search services, via synonym search (using ~) on major search engines, and as keyword clusters on many meta search engines. Specialty search services like the Quintura keyword map, Microsoft Search Funnels, Google Sets, and Google Squared can further help you come up with relevant keyword ideas.

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For many years, global brands have altered their marketing campaigns to target different countries.

An advertisement for a food product running in Australia may be markedly different from an advertisement for the same food product in the USA.

Why?

Whilst we share a common language, cultural values and norms differ markedly from country to country, and even region to region.

For example, what is considered soft sell in the US is often considered hard sell in the UK due to differing acceptance of overt commercial activity in those two cultures.

There are many differences:

Viewed from commercial America, British advertising looks like something bent out of shape by a culture so consumed with embarrassment it can’t look a salesman in the eye when he’s making a pitch, particularly if that pitch is laden shoulder high with emotion – love of country, family or God. From a mainstream US perspective our quirky elliptical leave-them-guessing advertising approach is kind of charming, but kind of unworkable too in America, with its fragmented audiences and ethnicities, its raging sensitivities and, above all, its huge risks. American advertising is risk averse because there’s so much at stake with those huge clients and their mega-spends. It means everything is researched to death so all backs are covered.

If you’re running a PPC campaign in different geographic markets, then you’re running a global campaign. So, you need to think about approaching such a campaign as a global brand would do, and tailor your message accordingly.

Your competition – who may understand those local markets intimately, as they live and work in them – will be designing their pitch based on local norms, so too should you, if you want to convert.

Here are a few ideas on how to target different cultures effectively:

1. Watch What Others Do

Take a look at how your product or service is advertised in other media in your target country. What language do they use? What imagery do they use? How are they making the pitch? Is it subtle? Hard sell? Humorous?

Now evaluate the ad copy and landing pages of your PPC competitors. What similarities do they share to each other? To ads in other media? How do they differ from how you would advertise in your own local market?

2. Spelling

A PPC ad written using US spelling displayed in another country screams “not relevant to this market”, especially when surrounded by ads that use local spellings.

Use “s” instead of “z”, and watch those vowels! Color becomes colour, center becomes centre and check becomes cheque.

Here’s a good reference guide to common differences.

3. No, They Don’t Think “Because It’s American, It’s Great”

Every culture thinks what they do is great, and what foreigners do is suspect.

Just as you don’t assume that something from Germany is great, Germans aren’t going to assume that something from America must be great. Some may even be hostile to the US – it just comes with the territory of being the new Roman Empire

It’s not that you have to cave to others demands, but it does pay to be aware of them. If you’re trying to convince someone to buy something, then you need to talk the customers language, on their terms, no matter if they live in New York or, well, York.

4. There Are Regional Differences

Just to complicate matters, there are significant differences between language in different regions in many countries, and particularly in the UK.

Just like there are differences between New Yorkers and Angelenos, there are differences between those in the north of England, and those in the South.

The South tend to think of themselves as intellectually and culturally superior to Northerners, and Northerners tend to think of Southerners as soft, fake and, well, elitist. These are generalisations, of course, but be aware that they exist, as these differences may alter your pitch.

5. Test

As always, test.

Change the language of your landing pages and ads depending on the accepted norms of local markets. Align your language and style with the most successful PPC ads targeting those markets.

Run with the winners and cut the losers.

Final Thoughts

The world is get smaller. The internet, and tech in general, is being driven from America. Naturally, it comes bundled with US cultural values.

This is leading to the Americanization of other countries and making boundaries, both physical and cultural, less of a block than they have been previously.

A pitch that works in America can translate into other cultures without change, but that won’t happen as a matter of course.

Think local.

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With Campaign Insights, Google takes data from the advertiser’s server logs to determine who was shown an ad and when. Then compares that to web searches and site visits culled from data from the millions of Google toolbars on computer desktops. Those results are compared to a comparable group that didn’t see the ad.

Then Google measures the difference between the number of brand searches and site visits between the two groups. To filter out the impact of other media or influences, such as a TV campaign, Google compares the data to the two groups’ behavior before the campaign began. The incremental difference is attributable to the display-ad campaign.

So you have to give Google your server logs, and in return you get Google massaged data. Yet another form of market transparency through opacity.

Off the start I am sure it will be fairly accurate, but 3 years from now when…

• the market is more mature
• Google introduces quality scores and other such levers
• Google is trying hard to hit the quarterly numbers

…I am not sure how much it would make sense to trust Google for these kinds of measurements. Of course opinion won’t matter if Google is the only game in town. It would benefit Microsoft and Yahoo! to push hard on this front because whoever gets the data partnerships locked up first will end up with a more efficient market and higher yields…eating market-share from other ad networks.

If they are honest with the data it might be a bit of an up hill fight. Even within the search channel the idea of attribution is iffy. Andrew Goodman wrote:

Problem: 74% of purchases can only be attributed to a single click anyway. By definition, that’s the last click. Attempt to “attribute” that purchase to prior clicks or other factors? Good luck.

…

So the next revelation: when you bucket keyword queries down into distinct types, only 7% of sales can attribute significant influence to some kind of click other than the last click.

And large advertisers, growing more aware of that lack of search buying funnel, are starting to spend more on longtail search keywords while avoiding bidding wars on top keywords, as reported in the WSJ:

Sprint is buying the top ads tied to phrases consumers tend to search for when they are close to making a purchase, such as “cellphone rate plans” and specific products like “Samsung Reclaim,” rather than more generic phrases they search for at the beginning of the shopping process, like “Sprint,” “AT&T” and “cellphone.” Pricing for the more-generic terms tends to be higher, yet less for important to driving sales, Mr. McPhillips says.

Of course if lots of big advertisers follow the same strategies they may leave holes in some markets. In a recent interview, researcher Jim Jansen claimed just the opposite…that the broad keywords were cheaper and provided more bang for the buck:

In terms of classifying queries in terms of what advertisers’ payoff is, I think the most interesting finding was that the purchase queries, the last stage of the buying funnel, were the most expensive and had no higher payoff than the awareness or the very broad, relatively cheaper queries. From talking to practitioners, that is a phenomena that they have noted also… which is why a lot of people bid still on very broad terms, to snatch these potential customers at an early stage.

My  SEO experience and PPC experience has been more inline with seeing great ROI on the longtail keywords. But with SEO for some really long-tail cases the page can be set up to pull in traffic that is so niched that it becomes harder to find relevant advertisements and offers to match up against the traffic stream. And of course the issue with longtail PPC is getting much volume.

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Such companies are still spending billions of dollars advertising in yellow page directories across the United States because it is easy and flat rate. Search advertising makes advertising more granular and trackable, but most small businesses could not be bothered with it. While the dead tree advertising model is in decline…

Only the local interactive segment will show growth throughout the forecast period. All other local media will experience marginal to rapid declines in the next 18 to 36 months. A small number of traditional media will rebound with a revived economy beginning in 2011, though most traditional media will continue to decline, albeit at a slower pace.

…Google is looking to help transition small local business advertisers over to search by employing familiar flat rate advertising services, as highlighted in AdAge:

In a bid to get more local advertisers to buy search ads, starting this week Google is trying out a new type of search ad and pricing system in the San Francisco and San Diego markets.

Rather than ask businesses to set up a campaign and bid for keywords, they’re offering local advertisers (or non-advertisers) a search ad for a flat fee. The fee is set by Google and based on the average that similar businesses are paying for a given keyword in that market.

Lets go ahead and take one more look at that last sentence

The fee is set by Google and based on the average that similar businesses are paying for a given keyword in that market.

So Google is using your keywords and your bid prices to automate setting up accounts for competing businesses. You pay them for traffic and they arbitrage your efforts by using you as a free market research tool for competing businesses. And imagine if/when Google has 5 companies in your market all bidding based on the same flat fee average strategy. Some keyword prices could fluctuate wildly as the house decides to arbitrarily bid up or down a particular keyword or basket of related keywords.

In an earlier piece Mona Elesseily mentioned a recent Nick Fox keynote where he mentioned the idea of keyword-less paid search accounts, and how Google could run them:

Nick mentioned that keywords were used as a proxy for relevance. Conceptually, there is no reason an advertiser couldn’t achieve the same results without having to directly manage a keyword list. Down the road, Google wants to state outcomes and have machine-based learning and algorithms come up with the best method of achieving specific outcomes. In the case of no keyword search, an advertiser (like a retailer) would provide information on products, product descriptions, pricing, etc. and Google would use the information to find the most effective way to place ads in front of potential customers.

Those machine-based learning algorithms need input to become efficient. What happens if you share your conversion data with Google? This is one of the areas of opportunity on the web for 3rd party analytics providers. As Google continues to make advertising easier (and seemingly cheaper – at least up front) there will be added value in operating outside of their ecosystem and/or limiting how much data you hand over to the borg.

Presumably as this gets easier to automate and test it will increase the value of related services like website design and conversion testing (until those are automated and commoditized as well). But some smart business owners who enter the search game via these automated technologies will likely eventually want more granular control of their strategy, as it is hard to build a long lasting sustainable business based on market averages – especially when the fox is guarding the hen house. Over time those who evolve their model to increase lifetime customer value, increase conversion rates, and build distribution outside of search will eventually make the average price too expensive for an average business to be able to afford advertising.

Depending on how successful this test is, there are all kinds of implications for advertisers like…

• building and maintaining sustainable profit margins in an environment where machine learning algorithms see your max bids and work against you with every search and click
• deciding how much data to share with Google
• deciding if it makes sense to mix together multiple regions on 1 site to make it harder for search engines to use your campaign as a seed for competitors
• deciding if new business lines (and perhaps some longtail keywords) should be bid on for different websites that are not bidding on keywords associated with the obvious core industry keywords

And the general theme for online service providers is that if you are not thickening out your service prepared to be commoditized. Google does not need to create more value than you can, they only need to make businesses believe that you don’t add enough value to justify the additional expense, and that it is just easier for them to go with Google. Time to invest in brand building! Sometimes the SEO and PPC markets seem like mirror images.

Related posts:

1. Badly-Managed AdWords Accounts — Worse for You Than for Google
2. Google AdWords Tax Calculator
3. Local SEO – A Case Study