Would Google miss your Advertising Dollars?

Over at the RKG blog, George Michie wrote an article on a very interesting question: How much do you matter to Google? Or, in other words: How much would it cost Google to lose an advertiser?

George looked at the decline of CPC’s in different scenarios of ad auctions where the top advertiser dropped out. He concluded that it matters a great deal how tightly packed an auction is. If there are a hundred advertisers with similar bids and quality scores the top advertiser is easily replaced with minimal declines in CPC’s. But even in loosely packed auctions the decline isn’t that big.

I was fascinated with the idea and started to play with the numbers myself. But I didn’t want to look only at CPC’s as they are just one part of the equation. While CPC’s matter a lot to advertisers, Google’s attention is on revenue. So how much revenue would Google lose if an advertiser dropped out of an auction?
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A new PPC Blog

Hi everyone, welcome to PPC Epiphany. I’ve carried around the idea of setting up a PPC blog for quite some time. Now it’s here.

The plan is to make this an advanced blog, covering things about PPC that you don’t read anywhere else. There’s already a huge backlog of ideas for posts. The first one (coming very soon) is rather long and theoretical, others will be more hands-on. The focus will be on Google AdWords and search.

A few words about myself: I work at Bloofusion Germany as Head of SEM, overseeing a small team working on client accounts. As an agency we do a lot of research on both SEO and SEM, and publish a lot, usually in German.

For the moment, this blog is a personal endeavor. PPC has become a passion of mine and most of PPC happens internationally or in the U.S. Through #ppcchat I’ve experienced what a great PPC community there is out there and I’d like to be part of it. I just hope you’ll overlook whatever strange mistakes my English may hold 😉

So let’s see what happens. Have fun.

Martin