Google Adwords Changes Cause Uproar

Customers rage at Google tweak
By Stefanie Olsen
Staff Writer, CNET News.com

In a rare sign of trouble for the booming search marketing business, Google is fending off complaints from angry customers who say recent changes to the company’s advertising program are costing them sales.

The search engine giant tweaked its AdWords service in late October, saying it was making the move to better identify successful ads–those that get clicks–and to increase their visibility. It also took steps to reduce the number of unsuccessful ads that show up on its search results pages. A company spokesman said overall ad response rates have improved since the changes took effect.

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What’s new:
Google is fending off complaints from angry customers who say recent changes to the company’s advertising program are costing them sales.
Bottom line:
As keyword marketing grows in popularity, providers will likely face a tough balancing act to satisfy advertisers intent on bidding up prices and fighting for visibility on increasingly crowded lists.

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But the new system hasn’t improved results for everyone, leading to a vocal outcry from those on the losing end. They say the new system pits smaller companies against bigger ones, ultimately favoring deep-pocketed advertisers that can afford to outbid rivals for coveted keywords. In addition, some say the changes may be responsible for hurting conversion rates–the crucial sales that come after someone clicks on a Web advertisement.

“We would love to spend more with Google, but we’re not going to overpay on (search) terms, when the surfer will click on terms and be frustrated and go elsewhere,” said Daniel Mardorf, the Webmaster at Cellphonecarriers.com, who said he’s seen response rates and sales from his Google ads drop since last month’s changes took effect.

The dispute highlights Google’s growing pains as it aims to extend its highly regarded search technology in new and more profitable ways. The company is reportedly preparing for an initial public offering early next year. The IPO is expected to value the company at more than $15 billion, largely as a reflection of its earnings from its growing keyword advertising business.

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