Is Google wrecking the AdWords program?

From: Loren Baker <loren_at_webadvantage.net>
Date: Wed 17 Jan 2001 21:59:17 -0500

Hi fellow Advertising Gurus,

We just received this e-mail from Google yesterday,
they are expanding the positions of their AdWords
program from 3 to 8!

One of the greatest benefits of this program is not
only that it is cheap, but also unique! However, with
Google expanding to 8 ads (which makes it a total of 10
ads served per page), Google is leaving behind their
positioning of a simple search engine that is not
cluttered with advertisements.

Here's the e-mail:

<most popular keywords, we are increasing the maximum
number of AdWords ads that can appear on a page from 3
to 8 effective January 22, 2000. The rates for the top
3 positions will stay the same ($15, $12, and $10 per
thousand ads shown), and the cost of positions 4
through 8 will be $8 per thousand ads shown.

Please note that you need not do anything as a result
of this change. If your AdWords ads are active now,
your ad will remain in its current position. If you
begin a new campaign and select a keyword that's been
purchased by more than 3 advertisers, your new ad will
be shown in the highest available position, and will be
charged according to the above rates. In either case,
your ad will move into a higher position if it performs
better than the one that is there currently, and vice
versa. For more detail about how ad positions are
determined, please visit:

https://adwords.google.com/AdWords/faq.html#position.

Finally, please realize that additional ads will only
show up for keywords with more than 3 advertisers. This
is likely to affect only a small number of keywords for
now.>>

I feel that this will lead to a dramatic fall in ad
response and advertiser satisfaction that has
established Google as a positive and advertiser
friendly medium. What do you think about this??

Do you think that they're capitalizing on the positive
feedback from the AdWords program and demand for more
spots or that they see the price gap between what they
and the other search engines are charging?

Thanks,
Loren Baker

WebAdvantage.net
http://www.webadvantage.net
Win FREE Search Engine Optimization of your site at
http://www.webadvantage.net/promos/seo.htm
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Received on Wed Jan 17 2001 - 20:59:17 CST