Let’s take those four items in order, starting with a quote from Web Strategist Cyrus Sheppard.
I understand the temptation. We can’t escape it. Google even tells us to plaster ads all over our site. But the AdWords Team is separate from the spam team lead by Matt Cutts. Don’t expect them to both give the same advice.
A great quote that one, though we do take a bit of exception to Mr. Shepard’s last word. Not that Google doesn’t give advice, because it does. Between Matt’s must-read blog, the Webmaster Help Center, and numerous other blogs and forums, Google actually does provide a lot more advice – good, bad and inscrutable – than most webmasters realize.
What is different in this case is that while the AdWords team advises, Matt Cutts’ spam team, penalizes.
Here’s an example of some actual Adwords/Adsense Team advice:
After noting that certain areas on a “typical” web page “tend to be more successful than others” in generating ad hits, they say:
“This ‘heat map’ illustrates the ideal placing on a sample page layout. The colors fade from dark orange (strongest performance) to light yellow (weakest performance). All other things being equal, ads located above the fold tend to perform better than those below the fold. Ads placed near rich content and navigational aids usually do well because users are focused on those areas of a page.”

Indeed. Note how the best places for placing ads surround and almost suffocate the page’s “primary content.” More importantly, note the relationship between the amount of real estate Google’s “heat map” artists allocated to content and the amount they allocated to ads.
To recap, the above advice is direct from the horse’s mouth.
Unfortunately for webmasters, Google’s steed is two headed. One of those heads, the one we just quoted, belongs to the “monetizers” in the AdWords/Adsense departments. The other head belongs to the purists over at the page ranking and algorithm tweaking labs.
As you might expect, what comes out of that head’s mouth is substantially different.
In a Google Webmaster Central post about PageRank, THAT horse’s mouth said that Google’s algorithms – especially the
relatively new Panda algo — are “aimed at helping people find high-quality sites by reducing the rankings of (sites with) low-quality content.”
One of the ways the Cutts Crew defines sites with “low-quality” content?
They have pages with “an excessive amount of ads that distract from or interfere with the main content.“
Bottomline line is this: According to the Google marketing department you need a lot of ads placed cheek-to-jowl with your best content to maximize your returns. The Catch 22 is that taking that advice may result in the Google ranking department devaluing your site so you get fewer site visitors to potentially click on all those ads.
So what we have here is a classic vicious circle. A vicious, return-position eroding circle that has trapped thousands of webmasters with Google search-ad-heavy pages since the Panda deployment.
“Vicious” and “trapped webmasters” are also perfect descriptors of click fraud.
Google, citing a vaguely defined four-stage firewall intended to protect webmasters from being charged for fraudulent clicks, claims that less than 2 percent of AdWords Clicks are fraudulent. Independent researchers and forensic analysts within the industry and university internet research labs peg the 2010 rate at between 17 and 29 percent. A U.K. marketing company whose lawsuit against Google has been wending its way through the courts for several years alleges the actual rate, at least in Europe, is about 40 percent.
One thing virtually every expert except those on the Google payroll seem to agree on is this: Click fraud has been and is increasing in geometric proportion to the proliferation of “botnets,” automated networks of hundreds or thousands of PCs programmed to generate clicks on websites set up to solely to display click-through ads for the botnets to plunder.
What does this mean to a typical small-business website? Here’s a very recent example from one of our subscribers.
“We bought about ten AdWords keywords and the average user session from those clicks was two seconds. Our average user session from organic search hits is more than five minutes and the average user session from our link-partner hits is over ten minutes. Two seconds can only mean click fraud, they ripped us off for about $1,000 in six weeks.”
How, you might ask, could this scenario have possibly played out? Google says it analyzes “all clicks” using “automated algorithms which filter out invalid clicks in real time,” how could such sophisticated examples of artificial lack of intelligence not notice that hundreds of two-second sessions could only be generated by an automated fraudster?
Don’t ask us, we can’t explain how or why anything involving Google works or doesn’t work.
We can however, make a comment.
According to most credible reporting services, global search advertising sales reached a record $40-something billion dollars in 2010. And Google, depending on which “informed source” you believe, banked 75 to 93 percent of that total.
Being conservative and figuring Google’s take as 75 percent of $40 billion, Google’s 2010 revenue from search ads was $30 billion. Setting the fraud rate at only 5 percent, much closer to Google’s claimed 2 percent than everyone else’s 17 to 40 percent, makes Google’s annual cut of the total click fraud market $1.5 billion.
Here’s the “economics rules” part. Your AdWords campaign may be for Shinola because of immutable forces beyond the control of Google or anyone else.
Once upon a time, before Google and LinksManager, before Tim Berners-Lee created HTML and the University of Illinois Mosaic team developed the browser technology we all live by today, a Georgia maverick named Dennis Hayes invented a new type of telephone modem.
Using Hayes’ relatively inexpensive modem, anyone with a computer and phone line could connect and exchange files with anyone else who happened to have a Hayes-compatible modem, a computer and a phone line. The fact that the same tasks could have been done faster and with far less tedium with a simple Ham radio transceiver didn’t matter. Radios were old tech and computers were new.
So that, children, is how it all began. Primitive PCs directly communicating with each other remotely.
Free enterprise being what it is, it wasn’t long before entrepreneurs – like the tax gurus at H&R Block, who established CompuServe to generate income from under-utilized servers during their May-December off-season — recognized the earnings potential in selling access to a central database full of all kinds of otherwise inaccessible information.
Even more insightful visionaries dreamed of a day when Joe and Jane taxpayer, who, after all, had paid the Pentagon to develop the system, could “visit” this thing called the Internet and find something useful to read when they got there.
And so it came to pass that Hayes’ modems and AT&T’s copper wires, Berners-Lee’s newborn Web technology and primitive seek-and-find applications like Archie, Gopher and JumpStation combined to produce a minor miracle of empowerment. They gave “everyman” the power to post his hopes, dreams and flames on a central computer for the whole world to read.
There was also a major miracle. The creation of the most democratic communications medium in history. Nothing like it had ever existed before, nothing like it exists now, and it is unlikely that anything like it will ever exist again.
At 300 baud, roughly 100 or 200 or 400 (the math is really tough for the arithmetically challenged) times slower than today’s virtually obsolete 56K dial-up modems, those early Hayes-compatible devices had roughly the same data transmission capabilities as circa-1850 telegraph wires … maybe 30 or 40 minimally formatted words per minute.
But that was all right because the prehistoric web really couldn’t handle much besides raw words anyway. And Archie, Gopher, Gopher’s twin children Veronica and Jughead, and all the rest of the era’s so-called search engines were basically limited to compiling lists of file names and maybe a brief description of a site’s contents.
Which stood the old cliché – freedom of the press belongs to the man who owns one – on its head.
With the infant web, anyone with a few hundred bucks could have their own virtual press. Even better, the web invalidated the other part of the cliché, which goes something like this: He who has the fastest and best press wins.
On the web, back then, all the “presses” were equally slow and pretty much limited to displaying black words on gray backgrounds. Adding colors, graphics, popups, etc. etc. etc. to pages was the stuff of dreams. Short of spelling everything right, there was essentially no way to make one site look better than another, even the typeface of all the black words on all the gray backgrounds was determined by the end-user’s browser, not the webmaster.
Better yet, from an egalitarian point of view, there was absolutely no way to SEO sites for the aboriginal search engines mentioned earlier.
How democratic was it really? Let’s put it this way. If a sixth-grade dropout working for McDonald’s and the Scientific American both posted stories about Einstein’s Theory of Relativity within the same timeframe, a person searching for an article on the subject would be as likely to get one as the other.
Which was probably not such a good thing.
On the other hand, that version of the web also cut biased, blustery press barons down to size. For the first time in recorded history, a small journal or individual reporter’s take on events had as much access to the public as CBS News and the New York Times. For all its money and power, the media elite – at that particular moment in that very young medium – could not trample the (forgive the expression) “people’s” media. And that was, by and large, a very good thing.
The “people” it turned out, could manipulate black type on gray backgrounds and write article titles as well as the moguls. And glorious, libertarian anarchy reigned. For a moment.
End of story. We all know what happened next . Web technology quickly grew to the point where anyone with deep pockets (and techno-savvy employees) could buy their way to the top. So they did.
Which brings us back to AdWords, once the small-businessperson’s, small-budget entrée into the world of paid web advertising. In one sense, it still is that … you can still take $25 or $50 in monthly “mad” money and bet on keywords at ten or 20 ten cents apiece. In most cases, Google will happily accommodate your low-buck campaign and intermittently post your ads on some low-traffic site at 3 a.m. in whatever time zone most of your customers don’t live in.
(Note: Or, as is becoming more common, they may reject your ad if they decide the landing page – let’s say your site’s home page – doesn’t meet their rather obscure definition of “quality.”)
But here’s the killer, pay-per-click is a huge market, $40-plus billion is massive amount of money. Big money. Big money from big businesses.
Big businesses like AT&T, which spent roughly $90 million on AdWords in 2010, or Amazon (approximately $50 million) or J.C. Penney – a top ten Google search advertiser which bought more than $2.4 million worth of AdWords in June (2010) alone.
Hhhmmm, J.C. Penney … wasn’t that the company that scammed and spammed its way to the top of Google’s organic returns by buying thousands of bogus, irrelevant, bad-neighborhood links?
True, Penney was penalized after a competitor ratted them out to the New York Times and the Times managed to smuggle two reporters into Matt Cutts bunker for a face-to-face confrontation.
More to the point, the penalties were only applied after the holiday shopping season. During the four frenzied shopping months that mattered, Penney’s black-hat campaign reigned triumphant in organic returns while less well-funded (and more honest) competitors languished in purgatory.
Now some might say that Penney’s ability to navigate serenely through Matt Cutts and company’s supposedly impenetrable anti-search-engine-spam minefield and Penney’s annual contribution to AdWords’ bottomline were not entirely coincidental. Yes, some might say that. We, of course, could not possibly comment.
Except to say this. If AdWords no longer works for you, it’s probably because Adwords, like the web itself 15 or so years ago, has gone corporate. Which leads to click fraud. The weight of the big business gold dumped on what was once a more or less level playing field has tilted it so drastically that small operators are, in many cases, simply sliding off the edge.
For example, Googling the word “moccasins” recently produced nine AdWords ads in the right hand column. One, exactly one, was an e-vendor specializing in moccasins. Among the other eight we found Nordstrom’s (ranked number one), Brooks Brothers, Fossil and cable TV retail giant QVC.
Why Brooks Brothers, Kmart or QVC would bid premium amounts for the word “moccasins” is a perplexing question, but the fact is they did. A second fact is that a small-business site outbiding them could easily incur substantial losses if the conversion ratio of the hits wasn’t unusually high.
The problem, and it has absolutely nothing to do with Google, is the immutable law of supply and demand. The big boys have discovered that AdWords works and are demanding an ever increasing share of the supply. A demand they – AT&T, anyone? — are backing with some of the fattest bankrolls on earth.
Is there a way to fight that kind of power?
Of course there is. Remember the “old” internet’s level-playing field we cited earlier? As we said, technology and money eventually gave giant multinationals control of the news business. Fox News, CNN, MSNBC, ABC News, ESPN, etc. get zillions of hits more than most of their independent, shallow-pocket competitors.
Even so, their control is far from total. Tens of thousands of alternative news, information and sports sites still exist. Some of them – Wikileaks, the Drudge Report, the Huffington Post — have almost as high a profile and hit count as CNN.com and its ilk.
Likewise, small-business websites are alive, well and increasing in number every day because their owners have discovered the secret of beating the big boys despite the tilted playing field: Play the game smarter than they do.
Subject your site to intensive, intelligent search-engine optimization based on excellent content and an active, relevant linking profile by getting links from relevant sites, through link exchange as necessary. Consider branding your site through Facebook and Twitter, generate some buzz on blog sites and, if you can afford to throw $ down the drain, consider a small, tightly targeted AdWords campaign - but do so very slowly and carefully.
Watch your website’s analytics and watch the average user session time coming from the AdWords campaign. If the average user session time is less than 30 seconds, pull the plug and join millions of small businesses who have also been taken advantage of Google AdWords and focus your link building efforts on more traditional approaches such as relevant link exchange (which by the way has a very low cost and long term good results).
Remember our “moccasins” example? A truly smart, creative e-moccasin seller wouldn’t just groan that he couldn’t afford to outbid Nordstrom’s and Brooks Brothers and do nothing. The smart operator would poke around looking for angles, workarounds, hidden opportunities.
And he would have found one. He would eventually, just as we did, Google the word “moccasin.” Which, the day we tried it, returned exactly one AdWord ad (QVC.com) on page one.
OK, ok, ok … like all shoes, moccasins are sold in pairs. Most people searching for them – like 95 percent – are going to use the plural. Fine. But Joe and Jane’s Moc Shop can reach the other five percent for next-to-nothing per hit. If they’ve got brains, they’ll go for it.
We began this outrageously long blog with a quiz: Google AdWords are: a.) Page Rank Killers b.) Botnet Heaven c.) Ruled By Economic Forces d.) Profit Centers e.) All Of The Above.
Let’s end it by adding an additional option: f.) Whatever you make of them …
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