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Should Google Be Worried About The Plethora Of New PPC Management Software Companies?

I have to ask the question, because all of us PPC Geeks are the #1 target for many of these new software companies who are rolling out software that will "allegedly" make it easier for the typical user or Search Agency. So, with this rush of new services hitting the market, what does Google, think about this SURGE of interest in trying to change the Search Marketing Industry?

Here are just a few questions that this SemGeek has been thinking about:

• Will the Adwords Interface be a secondary means to manage advertising dollars?
• Would all of this advanced technology, such as intelligent bid management, business rules, etc... put a hurting on their overall Ad revenue? (you know so the cafeteria can keep serving Filet Mignon with Italian Gelato)
• Since most of the companies rely on API's, would Google be forced to constantly enhance and provide additional support to maintain them?
• Would the ease of "cross-management" amongst the other search engine (Yahoo, MSN) put a little dent into the Google market share?

So, with the questions listed above, does Google have a plan in place to deal with this, or are they just going to go with the flow and begin to work more closely with these companies to continue to get as much Ad dollars as possible. Who knows. However, Google should be a little concerned that they might lose existing users of their Analytics, Optimizer and Editor products/services because many of these software companies offer much more advanced keyword research tools, ad testing software, custom analytics and intelligent business rules. (I am sure there are other features not mentioned in this post)

The BIG Concern: AD DOLLARS
I think that the biggest concern Google might have would be the Ad Budgets. Currently, and for the past year or so, PPC Advertising budgets have been declining. Even though Google still controls the majority of the search traffic, it's been tailing off. Now, with all of these new "money-saving" tools that these software companies are providing, will this just increase the decrease (huh????) in overall ad spend. Hey, no one knows if this will fluctuate between the different search engines, but it could be a big enough issue to become a "real" concern for Google.

What are the Risks for these Software Companies?
Well, the obvious concern is how much will the typical advertiser be willing to spend on the service and will the "benefits outweigh the investment." The second concern is competition. Google has the FREE Adwords Editor, Analytics, Optimizer, etc... Perhaps, it will be the traditional search marketing agencies who will be the best target market for them. Handling multiple client accounts more efficiently and saving valuable overhead by managing different SE accounts within the same interface.

In Conclusion: What Does the Future Hold for PPC?
Hey, lets face it. This multi-billion dollar industry keeps getting smarter everyday. We went from (1) pay your way to the top, (2) $70 CPCs, (3) quality score and (4) now sophisticated 3rd party software companies trying to get a piece of the Google Pie. These companies have broken through that technological barrier to allow Advertisers to bypass Google's interface and force customers to use their own software to control the what, where and how their Ad dollars are being spent. If I had to make a prediction, on how this will affect the Industry, I would say that the 1st Place winner in all of this, goes to the Software Company because they have the technology to make to work. The 2nd place goes to the Advertiser (if they can afford it). And at a "tentative" 3rd place goes to the Search Engines because everyone will have to wait and see the results before questioning if this shift in PPC Management will benefit or hurt them financially. 

Paid Search Becoming A Software Idea Goldmine

As the life cycle of PPC continues to evolve, we are seeing an increased visibility by known and unknown software companies who are building programs to help PPC Marketers "novice and experienced" do their job. Problem: They need to realize that even though automating the PPC process can be beneficial, removing the human element of past experience, creativity and the ability to think "outside the box" can not be altered or automated. Throughout the past year, I have seen these  companies making strides to improve the process. Let's discuss....

One company came to me and asked me for a review of their product and not only was that a great experience to be in a position to review this software from an entrepreneur perspective, but also as a SEMGeek. Now, even though they provided me with very small compensation for my time and I did not want to give away the farm, I simply reviewed their business model, asked questions regarding methods/techniques and general audience targeting questions. After looking back from this experience, it reaffirmed my previous thoughts that the market is telling us that the future of PPC is going to be about saving time and streamlining the processes rather than strategic hands-on implementation. In addition, I am not so sure that packaging PPC software as an "all-in-one" solution promising amazing results based on automation and marketing it to the mass public is the correct answer.

Another company contacted me recently and also asked for me to review their software product. I did not review it yet but this one is a little bit different than the previous company. This software is geared to building a solution to help agencies and Search Marketers effectively and simultaneously manage/create campaigns for Google, Yahoo and MSN all in one place like the Google Adwords Editor. Ironically, this company contacted me based on my past article entitled 2008 Wishlist: Universal Adwords Editor for Yahoo Search and MSN AdCenter which is exactly what this company is doing.

In conclusion:
In a world filled with entrepreneurs, great ideas and a booming industry, it's very easy to expect this movement from companies. The part that scares me a little is the intentions of the software firms. The last thing we want is for some software firms to preach what they want you to hear so they can profit from their evangelistic endeavors. What I mean is, if they created a solution for which "they" think is important doesn't make it right or even factual. Also, as Google, Yahoo and MSN continue to change their algorithms and push towards a more viral and contextual marketplace, how are these companies complimenting their efforts for that? Does it matter to them? Is it just a matter of time and already in the pipeline to lure in more investors? Who knows!!