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Has anyone else noticed that google adwords conversions keep going lower and lower? Is it just me? From what I read in the forums it’s not just me.

Over the last couple of years, but especially since about January 2006, I’ve watched my adwords conversion rate steadily decline. Yes there is more competition of course but there seems to be more to it than that. After all, there’s been more competition on Yahoo Search Marketing too, but my conversions there have remained the same or even increased!

In some markets, ads that used to have a 14% CTR now barely make 1% and get 1/10th of the impressions they used to. These are not “trendy” markets that just fade away, these are solid, year round niches that get traffic all year.
I think some of this may have to do with the google “quality score”, even though google says that the quality score only effects your minimum bid and not your rankings. (Not that I believe what Google tells me by any means.)

It’s also been speculated that Google is using the adwords conversion tracking and/or analytics data to “decide” what sort of profit you should be allowed to make. I tend to believe this one because I’ve seen evidence of it. Granted I can’t prove it but the coincidences are too many for me not to at least consider it. In general, the less data you give Google the better in my opinion.

But conversely, my Yahoo Search Marketing CTR, impressions, and conversions continue to be strong. Over the years my Yahoo/Overture cost per conversion has been a fraction of Google’s, and those stats are increasing by a large margin. Overall, my YSM cost per conversion is about 1/4 of Google’s.

Microsoft Adcenter is still too new for me to have a definite opinion. The interface is a pain in the butt and so I don’t use them as much as G and Y, but I have also found their cost per conversion to be far less than Google’s. Granted, Microsoft Adcenter’s traffic is only a fraction of Google’s or Yahoo’s but they’re one to keep an eye on for the future.
So in conclusion I’ll say this…Google Adwords is not the only game in town, and it’s definitely not the best either. They are the 900 pound Gorilla and they know it and act like it. The grumbling about them in the forums continue to grow and I know that many companies and webmasters continue to tire of them and shift more of their advertising budgets to other venues. I’d advise everyone to at least consider doing the same. Don’t keep all your eggs in one basket as the saying goes.

Technorati Tags: PPC, Google+Adwords, internet+marketing, traffic+generation, Yahoo+Search+Marketing, CTR, click+through+rate, Microsoft+Adcenter PPC+Conversion+Rate

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