Google Cracks Down on Arbitragers - Prices Take Off
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In fact, some AdWords users are already seeing some kind of effect from the program. Changes to algorithms never happen without some bumps along the way, or so it seems. This one is no exception. A number of advertisers have reported what can only be described as hyperinflation on AdWords, and many insist that they aren't running MFA sites.
E-consultancy wrote about the experience of Trevor Ginn, head of consulting at Auctioning4U. The company is based in the UK, and helps its customers sell goods on eBay. In one week, Auctioning4U saw its average click costs rise by 2000 percent. Ads that originally cost less than 50 pence per click now cost more than five pounds.
Ginn isn't alone. Graywolf, a regular blogger on SEO topics at Threadwatch, has seen many of his keywords turned off due to low quality. In a post that included a screen shot of the situation to prove his point, he explained that two of his keywords, originally running in premium positions with a double digit click through rate, have suddenly "become low quality and have had their bid prices jacked up to $1.00 and $5.00! How do you go from premium position to low quality overnight? How can you justify the price doubling or increasing by a factor of 10 overnight?"
If Google's strategy was working, one would assume that the increased bids were caused by a low quality score, which, given the timing, would be due to the landing pages being of low quality. Except that doesn't appear to be true, at least in Ginn's case. E-consultancy looked at his landing page, and it appeared to give a description of Auctioning4U's services, which was reasonable and relevant given his ad. In the case of Graywolf, by his own description, his landing page isn't ad-filled at all - it's a single product with the product's description and a "Buy Now" button, which goes through a redirect page and then to the merchant's web site. Assuming the ad mentioned the product, it's hard to see how the landing page could be more relevant.
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