To perform well in online marketing, you have to use Google. AdWords is far and away the best option available and you’re handicapping your efforts if you’re not using it. Unfortunately, Google understands this fact also. This means that as more and more advertisers rely on AdWords, Google can bleed more and more money from their budgets.
Joel Chudleigh has an in-depth look at the various ways Google encourages you to spend more for online advertising at Business2Community, but I’ll give you a quick synopsis.
Basically, Google has been able to develop innovative new ways for your ad to get noticed and ways for you to track how well your campaigns are performing, but has included in this innovations an urging to spend more to get more. This is not an indictment of Google, but rather a statement of fact.
Of course Google will readily show you click-through and conversion rates of ads that display at the top of search results as compared to your ads because they want you to bid up to capture those top spots. That’s just one example of AdWords’ service subtly prompting you to feed more into your ad budget.
Google has cleverly created a competitive landscape for advertisers where the highest bid receives the most views and clicks. For advertisers, there’s no choice but to play along.