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   [95]Google Cracks Down on Arbitragers
   Written by[96] Terri Wells
   Article Rating: star star star star star  / 6
   2006-07-25
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                               Article Index:

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    1. [105]Google Cracks Down on Arbitragers
    2. [106]Coming in for a Landing
    3. [107]Prices Take Off
    4. [108]Crash Victims


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   Google Cracks Down on Arbitragers - Prices Take Off
   (Page 3 of 4 )

   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 arent 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 isnt 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 Googles 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
   doesnt appear to be true, at least in Ginns case. E-consultancy
   looked at his landing page, and it appeared to give a description of
   Auctioning4Us services, which was reasonable and relevant given his
   ad. In the case of Graywolf, by his own description, his landing page
   isnt ad-filled at all - its a single product with the products
   description and a Buy Now" button, which goes through a redirect page
   and then to the merchants web site. Assuming the ad mentioned the
   product, its hard to see how the landing page could be more relevant.

                        [112]Next: Crash Victims >>

   [113]Discuss Google Cracks Down on Arbitragers

   [114]Since I wrote this article, Ive heard more about people getting
   sticker shock from...
   [115]This change has hugely impacted affiliate sites as well. It
   doesnt matter if you...
   [116]I love when google screw up things.It proves me more and more
   they have no clue...
   [117]Quite a bit of what Ive read about the impact of these changes
   seems to agree with...
   [118]Do you really want to call a coupon affiliate site" a quality
   site? I think there...
   >>> [119]Post your comment now!



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