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Jul12
New AdWords Algo Increases Bid Price 2000%!
According to a user at the WebmasterWorld forums named Soze, his PPC cost on one of his keywords went up 2000%!  Yes, you read that right, two thousand percent!

Soze says that for this particular campaign he received 46,000 clicks.  I don't know exactly how long that took, most likely a month I assume.  He had a minimum bid of $.01 and average CPC of $.05.

Now his minimum is $.20!  2000% because of the new AdWords algorithm.  It may not sound like a large dollar increase, after all his minimum bid is only $.20.  However, think about this.

46,000 clicks at 1 cent a click is only $460.
46,000 clicks at 20 cents a click is $9,200!

Even if Soze has a great profit margin, he won't likely be able to continue advertising with AdWords in this situation. 

If you remember yesterday when we talked about relevance being important, and this new algo being good for everyone, I might have to eat those words if we see more fluctuations like this!

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