Implications of Google's AdWord Changes

Google quietly announced the changes to AdWords on Thursday through their blog. Last day of Search Engine Strategies conference may have been a strategy in itself.

I had not heard of this during the conference - though it was a hectic one to say the least.

But from what I have read, Google is about to turn back on all inactive keywords - that is a lot of accounts that will suddenly see a spike in spend. So long as the bids are low enough it may not be too big of an impact - but if the rest of the words in the account have a high default bid it could be creating some major spends.

Add to that that we are now seeing bids required to occupy front page positions, it sounds like a push to the former Overture bidding system - is being attempted.

Google has become a lot more aggressive in its promoting of its products. The new Ad Placement tab was a major effort to reignite interest in the content network. Is this an attempt to ignite bidding on the main paid search listings?

We need to make sure we are not going through another let the customers paying for our tweaking of minimum bids. Now that many people leave terms that have gone inactive still in their groups, this turn on could net Google a nice spike in income.

Add that to the spike in CPCs when bidding for front page takes off and I think the shares I have in Google will be going up a little in the near future.

About the author

Frank Watson has been involved with the Web since it started. For the past five years, he headed SEM for FXCM -- at one time one of the top 25 spenders with AdWords. He has worked with most of the major analytics companies and pioneered the ability to tie online marketing with offline conversion.

He has now started his own marketing agency, Kangamurra Media. This new venture will keep him busy when he is not editing the Search Engine Watch forums, blogging at a number of authoritative sites, and developing some interesting online community sites.

He was one of the first 100 AdWords Professionals, a Yahoo and Overture Ambassador, and a member or mod of many of the industry forums. He is also on the Click Quality Council and has worked hard to diminish click fraud.