Google Price Fixing with Ad Quality

October 24, 2007

When you own 50% of any market, especially one that supplies mostly small and medium businesses, you’ve got a great opportunity to take pricing.

Take pricing?  Yep, just raise the minimum CPC on those PPC ads, and you can add millions to the bottom line.  How?  Something Google is calling Ad Quality, and because they are taking pricing, they need a new tool to show people their ads now have poor Ad Quality.

But Google does no evil, they save puppies, and don’t flaunt their private jets or exclusive Federal runways. 

Great, here’s a real life example that can only be explained by Google taking pricing:

* Created a new ad in Adwords for a very specific keyword and landing page
(both requirements for good Ad Quality)

* The keyword ran for a total of zero impressions
(Google must already know the keyword with existing data or it’s an Ad Quality issue)

* Traffic Estimate tool says that Google doesn’t have enough data on the keyword
(Ok, so it has to be an Ad Quality issue since it didn’t have any impressions)

* The brand new Ad Quality (price fixing) tool shows that the Ad Quality is ok
(Now I don’t get it, it’s neither data or Ad Quality, seems like you want me to spend more money without giving an actual reason other than you run the ad network)

The best part about this whole pricing scam is that Google, because they’re not evil, gives you the chance to buy your way out of the problem.  It says, just increase your bid, then your ad quality won’t matter as much.  I finally found a need for Yahoo.

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