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Old 04-16-2005   #6
andrewgoodman
 
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Without understanding fully the details of how this works, I fear this tool is a danger to many advertisers who will get burned because they don't understand how it works or what it's doing. Is it not, at bottom, a tool that will sacrifice ROI for volume ("automatically")? By either cranking up bid prices to generate higher CPC's (no victory there) and a bit of extra volume, or pumping up the volume on a lot of secondary words that aren't converting? That's something you could do yourself, but the point is, unless you were a rather cynical/lazy media buyer, you wouldn't want to.

In the absence of a better explanation from the good people at Google I will move ahead with the following assumption. Advertisers fall into four categories based on the following two-by-two grid.

.................................................. ..........SIZE OF MONEY
INTELLIGENCE OF MONEY ]]
------------------------------------------------------------------------
BIG ]] SMALL
------------------ -------------------------
]
SMART ] BIG SMART $$ ]] SMALL SMART $$
]
]
]
DUMB ] BIG DUMB $$ ]] SMALL DUMB $$

---------------------------------------------------------------------


Small dumb $$ has always been dead in the water. Big smart $ and small smart $ will do well. That's the nice thing about AdWords. There is a role for small smart $$.

The Budget Optimizer feature seems to be designed to suit the needs of Big Dumb $$.

Of course it is my job to help that $$ get smarter, so I won't be recommending the tool unless there is some very good reason, probably one involving $$.
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