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Google Is A Granny-Lover!

December 14th, 2007 by

Google is over 9 years old and it will reach double figures in September, 2008. You have to wonder how the Google Accounts from the very start are doing today.

On Google, Quality Score is king. The more relevant your ads are; the more keywords you have in ad text; the better your clickthrough rate (CTR) … the higher your quality score rating will be as a result. The higher your quality score rating, the cheaper your cost per clicks (CPCs) become – this is how Google rewards relevancy in their search results.

Quality Score is also something that you build up over time. If you can set your campaign up to maximise quality score and you let this campaign run for several weeks, months, years, things can become very cheap for you, indeed.

And so, back to the original question: How well are 9 year old Google campaigns doing? Just how cheap are their cost per clicks with all that Quality Score? This question becomes even more interesting if you apply it to certain industries where CPCs are notoriously expensive. “IVA” (Individual Voluntary Arrangements) as a keyword can cost somewhere around the £30 per click mark to get your ad into a visible position. “Bad Credit Remortgage” is another pricey one, around the £25 per click mark.

Are there any IVA and Bad Credit Remortgage companies out there that have been with Google since the start? Do they have 9 years of Quality Score on their PPC Accounts? If so, just how cheap are they getting their clicks, which cost £25 – £30+ for new entrants into the market. With 9 years of Quality Score, a cost per click of less than £3 wouldn’t surprise me. A huge cost saving on their rivals.

Thinking in strategic terms, this represents a huge competitive advantage for Google’s old boys. Companies can offshore their manufacturing operations and back office services to low cost labour countries like China and India in order to gain a cost advantage over their rivals. They can also buy Google chocolates and flowers and nurture a long term relationship with the search engine. And, as we all know, the best competitive advantages are the ones that cannot be easily copied. With this in mind, 9 years of cost per click reducing quality score can be replicated, but it would take a heck of a long time – 9 years to be precise! And who knows what could happen to the marketplace during this time.

RSS GlobeThis entry was posted on Friday, December 14th, 2007 at 4:17 pm . You can follow any responses to this entry through the RSS feed.

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