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Google's PPC for internet ads has fallen an estimated 20% this year

by Scot Standke
18 replies
Hard to believe, but even the great Google has been adversely effected by the recession:

Even Google Gets Frugal in the Recession - TIME

Has anyone noticed a significant drop in PPC fees they have been paying for long term campaigns?

Scot
#20% #ads #estimated #fallen #google #internet #ppc #year
  • Profile picture of the author Charles Harper
    Do lower fees entice us to advertise more in PPC?

    Charles
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  • Profile picture of the author derekwong28
    Something like this doesn't help

    Business & Technology | iFloor files Chapter 11, cuts most of staff | Seattle Times Newspaper

    Largest Online Flooring Dealer Files Chapter 11, Google owed $386,486.


    In a number of e-commerce forums, merchants are reporting lower conversion rates for the PPC spend. It is a matter of time before they make huge cutbacks. At least, it will help bring those insane PPC bids down at last.
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    • Profile picture of the author Steve Faber
      Originally Posted by derekwong28 View Post

      Something like this doesn't help

      Business & Technology | iFloor files Chapter 11, cuts most of staff | Seattle Times Newspaper

      Largest Online Flooring Dealer Files Chapter 11, Google owed $386,486.


      In a number of e-commerce forums, merchants are reporting lower conversion rates for the PPC spend. It is a matter of time before they make huge cutbacks. At least, it will help bring those insane PPC bids down at last.
      That's too bad. There's one of those close to my house. I've driven by it quite a few times. It's never good when a local business goes under, especially when it's tied to IM.

      Given that, I wonder of anyone here on the forum could have taught them a thing or two about PPC (definitely not my area of expertise, though). If their PPC ROI was better, maybe they would have gotten a better return on their $386K, not to mention the money they spent beforehand. Yet another business opportunity.
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      • Profile picture of the author ZelimirGraf
        Hopefully this will bring down the PPC costs, because in my opinion it`s getting too insane with those fees.
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        • Profile picture of the author SeanIM
          Originally Posted by ZelimirGraf View Post

          Hopefully this will bring down the PPC costs, because in my opinion it`s getting too insane with those fees.
          Agreed, I miss the old 99/01 days when I could basically close my eyes
          throw money into GoTo (then overture, now YSM) and double my money
          without really much thought or time to some horrid landing pages.

          Ahhh, good times...good times and noodle salad.
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      • Profile picture of the author marcanthony
        All businesses go through cycles...

        They will rebound for sure.
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  • Profile picture of the author Scot Standke
    This should be a good thing though, most AdWords gurus tell you to shoot for breaking even and then tweak from there.

    If the cost of breaking even just got 20% closer, it should be a lot easier right?

    Hint, hint...

    Scot
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  • Profile picture of the author Seans0n
    An important part of the reason behind this decrease is the increased popularity of FireFox. People don't seem to realize that Firefox is still becoming more and more popular and will soon overtake IE.

    Why does this affect PPC? Because one of the most popular Firefox addons is NoScript, a small extension which disables all ads on the internet, including AdSense and other PPC models. As more people use Firefox and NoScript, less people see your AdSense ads.
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    • Profile picture of the author Scot Standke
      Originally Posted by Seans0n View Post

      An important part of the reason behind this decrease is the increased popularity of FireFox. People don't seem to realize that Firefox is still becoming more and more popular and will soon overtake IE.

      Why does this affect PPC? Because one of the most popular Firefox addons is NoScript, a small extension which disables all ads on the internet, including AdSense and other PPC models. As more people use Firefox and NoScript, less people see your AdSense ads.
      Interesting observation, yet the NoScript site runs AdSense ads on thier site

      I wonder if this script effects the script that a lot of folks use from Aweber?

      Scot
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    • Profile picture of the author JustVisiting
      Originally Posted by Seans0n View Post

      Why does this affect PPC? Because one of the most popular Firefox addons is NoScript, a small extension which disables all ads on the internet, including AdSense and other PPC models. As more people use Firefox and NoScript, less people see your AdSense ads.
      I disable javascript ads because I have Adsense on my own sites. Since it is against Google's rules to view your own ads I do not want to accidently view them when admiring my own sites

      Therefore I never see any Adsense for Content.
      Pity for Google since as an internet marketer I research and buy regulary online.

      But that means that others doing the same as me won't see the Adsense ads on my sites
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      • Profile picture of the author Eric Lorence
        NoScript will block all Javascript on a site till you right click to allow each particular script.

        But once you allow one type of script on one site, that script, such as google analytics, will be allowed for all sites after that. Except for adsense, in that case you will have to allow the site itself.
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        • Profile picture of the author Scot Standke
          Originally Posted by Eric Lorence View Post

          NoScript will block all Javascript on a site till you right click to allow each particular script.

          But once you allow one type of script on one site, that script, such as google analytics, will be allowed for all sites after that. Except for adsense, in that case you will have to allow the site itself.
          What about Aweber Javascript?

          Does it block forms from Aweber by default?

          Scot
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    • Profile picture of the author Charles E. White
      Originally Posted by Seans0n View Post

      An important part of the reason behind this decrease is the increased popularity of FireFox. People don't seem to realize that Firefox is still becoming more and more popular and will soon overtake IE.

      Why does this affect PPC? Because one of the most popular Firefox addons is NoScript, a small extension which disables all ads on the internet, including AdSense and other PPC models. As more people use Firefox and NoScript, less people see your AdSense ads.

      I really don't ever see Firefox taking over I.E. Most people don't even know what Firefox is let lone use it. It is becoming more popular but not to the public in general, more to people like us who is in IM.
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  • Profile picture of the author cesarsan
    That's an interesting perspective on this, Seans0n. Is it possible that one modest extension can bring Google to its knees?

    Probably not, but even if only 40% of people on the net avoids seeing adsense ads, using complements for their browsers, it could hurt google badly.

    And what about sites like EZA that depends on adsense for a lot of their income.
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    • Profile picture of the author Kay King
      I think the decrease of 20% is related to one thing only at this time - a bad economy.

      I don't think the average person realizes yet just how bad our economy is or how many businesses are either going into Chapter 11 hoping to stay in business or are closing their doors right now.

      With unemployment rising rapidly and sales in some venues shrinking drastically, independent site owners may not be earning enough to continue ad campaigns at previous levels.

      People can't spend - including spending for advertising - when they don't have the money to do it and credit lines are shrinking.

      Outside IM, many internet visitors see adsense as a "service" that provides info related to what they are looking for. They don't care who is paying for an ad or who is earning by displaying the ad - they see it as helping them find sites that offer the info or product they want.

      kay
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  • Profile picture of the author Alp Bozkurt
    I personally experience the decrease in ppc prices. Maybe more than 20%. But conversions are also getting lower and lower... Definetely more than 20%...
    I will almost say "ppc doesnt work" soon...
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  • Profile picture of the author derekwong28
    There is something else going on at the same time as well. Lots of people, myself included have received warning letters from Google Adsense concerning the use of MFA sites. (You will see more of this discussed in the Adsense forum here).

    Also, there are rumors that Google Adwords is about to tweak its quality score again so that more low quality websites will be hit. It seems that Google is desparately trying to increase the actual conversion and ROI for its Adwords advertisers.
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  • Profile picture of the author Fabian Tan
    And folks, that's why you ramp up your advertising in these times, to ride the wave during AND especially once the recession brews over!

    I just had my best month last month and this month looks to be even better, and the reason is because while other people have stopped marketing and all the talk is about cutting costs, I'm actually increasing my spending, and as a result making more money.

    Fabian
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