Effective Internet Marketing Strategy and Technique Through Experiments, Measurement and Audit

How the AdWords API charges favour evil adverts

  • The more specific you are with keywords (e.g. not using single word, but using multiple words) then the more keywords you’ll use, and the more keywords with impressions you’ll have - you’ll also pay more to use the API than someone who is less well targeted. This is counter to the entire basis of effective search marketing and Google’s previous focus (incentivising those with a high CTR/high relevance) - API charges disincentivise relevance by making it more expensive (less than 10% of searches are single word and there’s a combinatorial explosion on multiple words, and the effective use of negatives if you use broad match rather than using exact and phrase matches).
  • The more specific you are with adverts, the higher the charges. See previous argument for why this is counter productive to Google’s previously held goals for the best page of search results - you need more adverts in more AdGroups to address each user intention, but you are taxed to improve relevance.
  • The more active you are with bid changes the more you’ll pay - but if your relevance alters with time of day (which is why you change bids - you expect a lower ROI so you change your position to meet ROI targets) then you’ll be charged more to deliver a better page of results.
  • The more active that you are with inventory management (not delivering AdGroups when you are out of stock) the more you are damaged by both the API and the History - again, counterproductive; if I suspend an advert because there is no stock, this is a good thing, improving the search results - but you’ll pay twice to do that.

"How the AdWords API charges favour evil adverts" was published on September 5th, 2006 and is listed in adwords, API.

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