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Pointless Speculation About G Strategies
Posted 03 September 2007 - 09:36 PM
Since they control a majority of SE traffic anyway the organicside just really needs to keep up (it cannot really command a greater market share). How would they go about raising revenue levels? Internet usage is rising, but not enough to fuel growth. Basically almost all keywords that one could imagine a commercial use for are beng bid on. Making higher sales is not straight forward at all.
I can think of only two high level strategies.
1.increase ppc click prices
2.increase ppc clicks
1. I believe that they are actually (as evidenced by the urchin purchase and the release of optimizer and various tweaks & additions to the adwords platform) trying to grow thenumber of people converting online as a whole. Quite a bl--dy goal. More online conversions, more value attached to online traffic, higher bids. I mean google scrapes a percentage of revenue generated online in entire industries (some of which now generate a lot of revenue online) that needs to be counted on fingers and toes. Raise the total, you raise your cut.
2.Raising ppc click numbers is going to be tricky, and g are cautious aren't they? Does anyone reckon that total ppc ctr is going up? Raising relevence raises the likelihood of those getting clicks in the long term as people get used to getting relevent pages when they click. However, isn't this eventually some sort of internal war between ppc & organic. The higher the quality of organic results the less relatively relevent the ppc results are.
Alternatively they could take over advertising as a whole: tv, radio,electronic posters & billboards around the world, newspaper ads all run from an adwords platform. It is a possibility.
Posted 03 September 2007 - 11:37 PM
I take it, then, you are American. In otgher parts of teh world (read China, India) interenet is takign off, at the same time that teh economy is booming. Seems like a recipe for increased profits to me.
There are only threee ways to make more revenue (as oppossed to more profit):
1. Get a larger market share.
2. Raise the cost of items (whilst maintaining simialr levels of sales).
3. Find new markets.
I reckon, at a bet, G is going to do all three
What about increase the spread? do blind people dream images is one example of trillions without sponsored ads.
Educating customers to build better campaigns, to target more terms, is going to have a massive result for all concerned.
Posted 04 September 2007 - 09:16 PM
No actually, everything else though. Irish, Israeli & Australian. But what I meant is that waiting for the internet or the world economy as a whole to grow is not really a strategy.
I just don't think the potential is that much higher.
True. Definitely. But again they are going to hit the ceiling at some point. Most large accounts are profesionally managed, the tools are like lasers (usually) and they puta lot of effort into education and improvement of campaigns.
They even seem to be genuinely interested in increasing conversions across the board. I guess its on part of the more in more out (and in to google) strategy.
Sure. Actually with all this massive growth lately they mayhave a big (expensive) internal cost leaking mess.
Posted 04 September 2007 - 11:07 PM
2.increase ppc clicks
The market will take care of a healthy amount of growth in both, all by itself. Google has to figure out how to:
3. Increase ad inventory (impressions)
So they can sell more... 'cause most of the folks I'm working with are buying almost every click they've got to sell us.
Posted 05 September 2007 - 01:17 AM
Thats exactly the interesting thing. They have the market, effectively all of it. Internet marketing is Google. Google get paid first.
Actually trying to increasing market share (impressions) would be a difficult and risky venture. They would have to be the only search engine. There is a real chance that they will actually lose rather the gain market share regardless of their efforts.
Anyone have a look at the google print/radio ads. If they crack this market, they tap advertising as a whole. I mean effectively, the current situation is. You got and IM strategy, you pay google a chunk (big chunk) of the budget. You may budget project management, seo, copywriting, website design, testing, etc. adwords will usually be in there, big in there.
They may want to achieve that effect on advertising as a whole. It makes sense. Adwords is, IMHO a historical turning point for advertising. If they can do radio as well as they do SEM why not? Why not tv?
I mean google is a beast. They are used to big growth, really big. They already have the whole market. True, its growing fast but is it enough for the Google apetite? They are used to increasing revenues by a lot every year.
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