PPC Market Status - July 2007
I have been working within Pay Per Click (PPC) advertising for the last 3 years.
The speed in how the market has changed has given me a career and not just a job.
There is a lot of talk of Google UK wanting to exterminate agencies. This started with the loss of agency commissions and being replaced by Best Practise Funding (BPF).
I think agencies still have a future......for now!
The recent introduction of the Google quality score now means that there is even less transparency than before and makes it even more difficult for companies to take this on in house.
Working in an agency environment has helped me stay at the forefront of the market and the learnings shared within the team is priceless.
Having a number of clients in the same sector enables an agency to control the market in terms of costs. Many advertisers are reluctant to work with an agency who are managing a competitors account.
In addition to controlling the market space it as proven valuable in proven to Google that their 'automated process' is not working properly. They soon fix this with a few clicks here and there!
For example;
Client A - Good Quality Score - Low CTR - Low Min CPC
Client B - Good Quality Score - Higher CTR - High Min CPC
The main difference in the two accounts was the size of the budget, Client A was spending substantially more. So now we have a new factor to consider, one that Google does not mention in its learning centre.
Are Google giving preference to those who are spending more? In a word YES!
We shouldn't be suprised, it makes perfect business sense and occurs in every day commerce.
It seems difficult to see Google as a business and not as a tool.
- The more a client spends the better service they get.
- The more they spend the more discount they receive.
- These instances are the same when duration of contracts are considered.
