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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. 

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One Response to "Should Google Be Worried About The Plethora Of New PPC Management Software Companies?"

  1. James Green says:

    I am a firm proponent for tools both as an advertiser and as an SEM. One reason I believe Google does and will continue to welcome these types of tools is because as long as advertisers can maximize their value from search they will continue to spend. As third party tools make this a key focus of their operations Google keeps business that they may otherwise have lost while also reducing their overhead because they require few adwords reps to maintain accounts. Especially with Agency based tools Google is essentially outsourcing client services and passing the buck to the advertiser. What’s more, I believe these tools will also help Google succeed as several advertisers look to grow their business and will increase spending. The more efficiently this increase is done the more it will continue to grow.
    My $0.02 but I certainly have a bias.

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