Is Google Quietly Trying to Compete with PPC Software Companies?

Over the years, Google has been consistently adding more “bells & whistles” to their AdWords Platform, and they are continuing to show signs of becoming their own PPC Management Software Company that could be a real threat to the existing leading companies in the marketplace today. In fact, if Google was able to get widespread adoption of the management tools by marketing to advertisers that, instead of spending  extra dollars for these tools, why not just use Google’s free tools and take that money and put it back into their monthly ad spend.

The movement by Google to offer similar PPC optimization tools for Free as compared to other companies such as Acquisio, ClickEquations , and others, where the advertiser has to pay, makes it a pretty good investment for Google and advertisers because those extra dollars would go back into advertising, or, in other words, Google’s Pocket. With that said, there are many questions that come to mind:

  • How good is Google compared to those other PPC Management Companies who, not only have a loyal following, but also have familiarity with their products?
  • Will the Advertiser see a higher Return on Investment using Google’s Tools?
  • Will it force the 3rd party companies to lower their rates to compete with Google?

Of all of the tools that Google is rolling out to their advertisers, there is one in particular which struck a cord with me and hinted on the fact that this maybe Google’s next frontier. For example, their new automatic bidding tool called Enhanced CPC is designed to increase ROI on an advertiser’s Max CPC campaign. Many PPC Marketers used to rely on this automation from third party companies so  time could be better spent on more important things.

Furthermore, another interesting point to note is the marketing language that Google is using to promote the tool. Here is a snippet from Google “Enhanced CPC can be thought of as an ‘‘ROI turbocharge” setting for your existing Max CPC campaigns. Simply check a box and let the AdWords system get to work improving your ROI.”  In essence, Google is trying to inadvertently eliminate the need for 3rd party bid management tools, or at the very least take the API integration to the 3rd parties out of the mix. However, in their marketing language, Google appears to be more sympathetic to other outside bid management tools by mentioning their Bid Tool is compatible with third party bid management systems.  This statement, even though soft and fuzzy, does not make a lot of sense to me because it forces the advertiser to make a choice of one or the other. How can an advertiser use both at the same time?

Another interesting tool from Google is their Analyze Competition product where advertisers can see what their competition is doing. Even though this is full release mode and was first introduced back in June 2010 and then expanded to all advertisers in August 2010, it’s another sign of more competing tools to come. In the past, we had to pay for this service from other 3rd parties to get this information. But again, the marketing messaging that Google uses to describe this service reveals more than just a nifty tool. According to Google, “For the first time, you can see how your AdWords performance compares that of other advertisers.” So it’s pretty clear that Google wants to provide every possible tool to get their advertisers to spend more money with them.

In conclusion:

No matter how we view the trend of Google pushing more and more PPC tools that were once only provided by third party companies, it provokes competition, and that can only benefit Google and the advertiser. However, it does motivate and open the door for PPC Management companies to come up with something new and exciting that Google does not already have in their arsenal. On the other hand, Google could just buy out those companies and eliminate the competition altogether. We’ll just have to wait and see.

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Greg Meyers is the President/Founder of iGESSO Internet Marketing, LLC and author the Search Marketing Blog SemGeek.com.

Posted by admin in Google AdWords, Internet Marketing, Paid Search, Pay Per Click, Search Engine Marketing, Search Engine Optimization on September 22,2010

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Comments:

It might be just me but who said the current players in the PPC optimization tools industry have any exclusivity. I am a customer and I want the best tool at the best price. AdWords is Google. The traffic goes to Google and them somewhere else. I am happy and excited I see a new Google tool. All these companies have no problem in using free Google APIs and data to build their tools upon.

But if Google does it, it is compete in unfair fashion… I do not buy it

3rd parties tools ate likely used to advertise on Google competitor´s ,like Yahoo and FB.

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