Google’s gaggle of Ph.D.s has added another yet intelligent twist on search engine marketing. Google’s new Budget Optimizer will manage your keyword bids in order to get the highest number of clicks possible given your AdWords budget.
As search engine marketers know, you can burn through a budget very quickly by getting in a battle with a major competitor for the #1 spot on a critical keyword. I read recently that at the end of a quarter where revenue targets might not be met, two well-known diet companies were paying upwards of $60.00 per click for weight loss keywords.
Now, Google will take some of the emotion and intensity out of the process of getting clicks from AdWords by using an algorithm to optimize your campaign for you. I don’t understand yet how this algorithm will work if there are say a dozen companies in the auto industry all bidding for the same keywords–how will Google optimize all of their campaigns at the same time. Optimization works best when you have “dumb” competitors who never change their bids or respond to what you do. Some smart SEO professionals have strategies to “trick” other bidders into going too high (and blow through their budgets) so that at the end of a month they can get sweet deals. Google’s approach might make some of these games and tactics obsolete.