Wednesday, August 24, 2005

Greetings Everyone,

As many of you have by now heard Google has changed the way the AdWords system works. They have reverted from a system that favored intelligent advertisers to one the favors the deepest of the deep pocketed advertisers. This is not to say the intelligent ones still do not have a marked advantage, it is just to say that the ones with the smaller pockets will be hurt the most.
Here is the email we recieved as Google advertising professionals:

"Hello from the Google AdWords Team:
We're happy to let you know that we've implemented our new keyword status system. We've simplified our keyword states and introduced quality-based minimum bids, giving you more control to run on keywords that you find important. With these improvements, your keywords will now either be active or inactive, depending on their quality and maximum cost-per-click (CPC).
We suggest you log in to your account to view these changes. Any keywords that were previously normal, in trial, or on hold are now labeled as either active (triggering ads) or inactive (not triggering ads). Any keywords that were disabled before implementation will remain labeled as disabled in your account for several weeks. This gives you the opportunity to review and activate any disabled keywords you'd like to run on before we delete them. However, we will no longer disable any new keywords you enter into your account.
Here are some resources that will help you get better acquainted with the new keyword status system:
The new performance monitor
What's changed FAQ
New keyword states
We believe these system changes will give you more control to run on keywords you find important and result in higher quality ads, enabling you to reach your potential customers more effectively.
Sincerely,The Google AdWords Team "



So what does all this mean? Well as a major victory for us, and for all of our clients, we now have free reign over which keywords or phrases we can bid on, we are no longer held to a secret formula that judges whether or not you are even allowed to purchase a word. However equally as devastating is the new minimum bid system. In the week now since its release this new system has seen our average expenditure in some of our clients accounts go up 500%, and in not even one case has it gone down.

Does this mean your prices will go up? That is difficult to answer, because as of now this new system is severly damaging our ability to provide quality, targeted keywords to our customers. However the principal board memebers have unanimously decided against raising prices for the time being. We feel we are strong enough as a team to overcome this obstacle, and intelligent enough to search for loopholes to exploit on our clients behalfs. So for the time being, you can rest easy. Should the prices be increased in the future, all clients who have paid advanced billing will NOT be subject to the price increase, furthermore we will give all clients at least 1 months notice.


Should you have any more concerns on this matter please feel free to contact us at service@1avatar.com


Kindest Regards,

Avatar Business Solutions