Google Using Organic Search to Determine Cost Per Click Values in AdWords

Jeremy Chatfield of Merjis has said it best in this post detailing why some keywords in AdWords accounts will never generate impressions. Additionally he predicted on 9-16-08 some of the impacts of the 9-15-08 AdWords quality score updates would actually mean for advertisers. His predictions have come true. Read this interesting article on how he feels that Google develops the cost per click for brand new accounts before the ads even start to run in this post from his blog from trends in organic search.

I have gone back to read this post several times over the last month and feel that Jeremy has nailed what happens in AdWords and that Google uses trends and histories accumulated from activity in organic search to determine the value of a click in their network. If you have ever wondered why great keywords in your accounts will not show impressions no matter what you do, you will find the answers in his post.

Jeremy Chatfield is a leader in the Google AdWords professional account manager community. We became friends in one of the Google AdWords support forums (even before social networking). I think that you will agree that several of his key points deserve particular merit and consideration.

1. …in addition the PageRank derived algorithms, some kind of AI that collects information about clusters of words and their proximity.

2. [In regards to cost per click]…The weaker the synonym, the higher the very first (Initial) MinCPC you are offered.

3.  …When I see “$0.22″ in a new account, I immediately assume that it is the Initial MinCPC, just after the AdGroup has been made, and that the keyword is a close synonym of advert copy. If I see a $0.50, I assume a weaker synonym.

4.  …[On the Google Slap] When this happens with rarer searches, and a business depends on that stream, it can look as though Google has made a decision to pull the plug on the business. Impressions on a carefully chosen set of keywords can die to nothing, overnight. Phone calls to Google will result in denials of any changes to the system. But still the business is in the pits.

Transparency has not been one of Google’s strong suits and with the Google announcement that they make between 10 to 50 quality score updates a month (see this past Wednesday’s post) it has to be assumed that this is really all about profit generation and not improving the consumer experience in reality.

Google’s motto used to be “Do No Harm”. I now recommend that the motto be changed to “Get What You Can, Fool!”

Unfortunately we in the professional and advertising community have helped Google to control us in this manner, we jumped when Google Analytics was offered! How do you think that Google has leared the value of a click and the value of click through rate on websites, but by taking the proprietary information, that we used to guard closely, that they now harvest from Google Analytics, as well as trends in Google.com search activity and history from iGoogle and personalized search results to create golden handcuffs for us and to bleed us for cash in AdWords.

What is particularly unfortunate in this whole scenario is that there is not really a strong viable platform alternative to Google AdWords. If there was, then Google would not be able to exert the control that it does on advertisers and their pocket books. If there was ever a case to prevent Google AdWords ads from showing on the Yahoo Search network, this is it!

AdWords Shows Activity From Search Partners

Just posted this last week on the Google AdWords blog was a note that AdWords will now show, in the campaign view, separate activity from the Search Partner network. You can read the full article and see a screen shot at the AdWords blog.

For many client accounts we do not enable Search Partners but now we have metrics that will help accounts to decide if this is a good or bad option for them. Previously any Search Partner activity was recorded in the Search activity.

Just what exactly is the Search Partner network and what does it consist of? Well according to Google, they hang the big carrot over your head encouraging you to be in the Search Partner network. Some people even think erroneously that the Search Partner network is Google.com.  Here’s what Google says about the Search Partner network:

Search partners include AOL, Ask.com, and many other search sites around the web.

What Google does not spell out here but any Googler at the customer service phone number will clarify for you is that any site, yes ANY site – even including Joe Plumber’s website, that has a Google search bar is included as a Google Search partner. Some good ones are Adobe.com, AOL.com, ASK.com, but also sites like AskDaveTaylor, Business.com, and others small and large. In fact if I used a Google Search box on my website, I would be considered a Search Partner.

Improving the transparency of activity from Google Search Partners is a very good thing as enabling your ads to be shown in the Search Partner network can be a big budget sapper and render some of your clicks to be of questionable quality. Now you will have a tool to help you decide if showing ads in the Search Partner network is good for you.

Google Speaks Again on Duplicate Content

The Google Search blog posted an excellent post today on duplicate content. If you are running an affiliate website this is a “must read” post for you.

The synopsis is that one – there is no duplicate content penalty for duplicate content, but two – that Google works very hard to give the site with the most authority the full organic capital for the page that they have created. Google has become incredibly smart and with some of their new patents this past year on duplicate content identification, it is nearly impossible to scam them.

What this means specifically for website owners is to not stress out over duplicate content such as print version pages of your website, but for affiliate sites, and spin-off topic websites, just don’t expect them to really be able to place organically. The parent site will place as it has the site authority as well as the original content ownership in Google’s eyes. This also means if other sites are scraping your content, they may be dinged in this brave new world.

The take away from this Google post is that if you are using affiliate website content, better get a part-time job or keep your full-time job you may never be realistically able to get great organic website placement to be able to make a real living from an affiliate based marketing website.

For website owners that are thinking of spinning of topical websites to get better placement on a particular service, don’t waste your time unless your content will all be unique and you will really work hard to get placement on your spin-off site. Your parent site will simply have more authority and content ownership and the spin-off site will always place lower. (I have actually tested this approach for over one year now and find it to be a truth.)

So invest your time and money where it matters – your main website with great authoritative and unique content.

The Color of Your Money Does Not Determine Your Organic Placement

This is a truth that you should remember especially when you get contacted by search engine optimization firms from a cold call. You cannot buy organic placement on Google!

Google placement is not for sale! This is not the first time that I have heard this story, a client calls and says for $xxxx a month this firm guarantees top placement on Google and Yahoo because they have a special partnership with the search engines. Just these statements alone should put up a red flag for you and you should not buy into the scam. That is what it is, a scam to separate you from your money.

Google has over 150 different factors that determine organic search placement and the color of your money is not one of them! Google does not partner with SEO firms to provide organic placement. Actually that is one of the best things about Google. A small firm can actually compete with a large firm for great organic placement through great content, regular updates, and slow link building strategies. The playing field is leveled by considering what really matters to readers – targeted and great content.

Now, notice that I have not said the same about Yahoo. This democratic mentality does not apply to Yahoo. You may possibly be able to buy your way on Yahoo. We know that Yahoo preferentially will show websites in organic placement results that have bought into their local non-PPC programs sold through advertising agencies, but Yahoo is closed mouthed to even us, professional webmasters, on the real details here and how to participate. So you may be able to buy your placement on Yahoo, but be very careful over what you buy in to.

The bottom line is, if a firm says we can guarantee top organic placement on Google, you should question the program as they CANNOT guarantee this, Google is not for sale!