Many Google AdWords advertisers have experienced the brunt of rising prices of keywords. Previously, the advertisers previously went ahead with the increasing prices. But the recent trend shows that the advertisers are loosing their profitability because of spending too much over the keyword prices. MarketWatch discussed with half-dozen Google customers and reported that all of them spent somewhere between $4 million and $10 million on search ads in 2006. All the six advertisers have asserted that they will spend less in 2007 to have their ads placed alongside search results on Google.
Moreover there are a lot of other things that are adding to the discontentment of the advertisers. MarketWatch reports, “To a large degree, the dissatisfaction with Google's advertising is due to the phenomenal success the company has had in persuading other firms to advertise their products and services using Internet search keywords.” They further assert that,“Meanwhile, there's also growing dissatisfaction with the return on investment provided by Google ads.” Advertisers are supposed to pay Google each time a visitor clicks on their advertisement. However, they will only incur a profit if a customer purchases something after being channelized to their web site. The low rate of return signifies the occurrence of click fraud.
Google sure needs to step in and take charge of things else their advertisers will land up elsewhere.