The other effect of "free" Google ads
Reader comment on: The Google Shakedown
Submitted by Fred Van Bennekom (United States), Apr 22, 2011 07:04
As someone whose business depends upon Adwords, let me point out another effect of this free advertising. Adwords has become increasingly more expensive as more companies advertise and minimum bids increase. (Though, I know for a fact that minimum bids are set by criteria other than competition. I am the only bidder on some keywords and Google sets a high minimum bid.)
So, $100M of ads at 50% discount means $200M equivalent ads. This may drive up my Adwords cost -- to Google's benefit.
Disclosure: Google stock is in my personal portfolio.
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