Google profits soared dived then soared again and pundits are exclaiming that though this stock is gold it must be close to over performing; so what would justify something like this : PPC on Google is Finished.

In truth, nothing could be further from the truth. Pay per click advertising with google adwords is roaring ahead, much to the chagrin of ask, MSN and the number 2 giant Yahoo. So, if this is truly the case, why how could there be any truth in this unsubstantiated rumor?

Would Google’s popularity hurt the customers? No, its a win win for them with more advertisers, more choices and google pumping more resources into faster servers etc. How would this work at a auto or car auction if the bidding area was suddenly flooded with triple the number of bidders. Bidders who perhaps stopped off on their way to a casino ? Would the vehicles be cheaper or more expensive?

If you normally have 1200 potential buyers at your saturday afternoon car auction then one bright saturday afternoon 40 additional truck loads of fun filled revellers with deep pockets stop by on their way to the casino, well are your cars going to be auctioned for higher or lower prices?

You better hope that they beeline for the bus doors immediately afterwards, because if they wander over to join the auction, the prices of all cars will go uphigher and higher. And was this good for you or the Auctioneers? You already know the answer to that one.

If those cash rich players on the way to the local casino actually don’t spend all their time in the bathroom, they are likely to bid on a few cars just for the hell of joining a live gambling arena.

So, now you understand what we mean by the death of pay per click? When there are too many bidders bidding for the same set of keywords, the price is going to go up. Some of the bidders will have deep pockets and nothing else.

This is exactly what happens when many corporate buyers run in and bid up keywords without taking the time to seriously learn the craft.

How about paying 10 dollars per click for the keyword “marketing”? A little too expensive right? ( and broad while you’re at it, lol ) Just 101 clicks later and you have topped the magic thousand dollar mark. I hope you have a real expensive product to sell, ha ha.

Does that sound like fun?

You are not alone. In helping a friend with some PPC on Google, I noticed a curious phenomena. Over 40 brokers pushing up the price bidding on three phrases and just one lone broker in yahoo and nobody at all on msn.

By Friday of the same week, Google was reporting over 9,000 searches on just 3 related key phrases – Fly condo, Fly Condos and Fly Condos Toronto.

Nimbly and joyfully the gang of 40 plus real estate agents in Toronto bid the pricing above the 1 dollar mark, while the Yahoo search costs stayed under 10 cents.