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ADWORDS DOES NOT TREAT ALL THE ADVERTISERS AT THE SAME WAY

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Visitor ✭ ✭ ✭
# 1
Visitor ✭ ✭ ✭

Hello,

I am the owner of a small hotel and I would like to make a complaint as I am sure that Adwords does not respect the rules of advertising or, if they do not even exist, it does not treat all the advertisers at the same way, thus not respecting its same guidelines. In fact it is written that Adwords works like an auction, where the more you pay for each click received and the more you will be higher in the rank, providing a higher budget. The tourist portals, the international ones, which offer Ads in all countries, cities worldwide and in all languages, receive a special treatment in advance and it happens that in a single city, compared to an Ad of a single Hotel, they pay for each click, much much less than it, being right in the highest ranking: For example, if the single hotel for the keyword "hotel" with the name of the town pay a click 1.5 Euros, for the same position a portal will pay maybe no more than 1/10 of 1,5, because, as Portals advertise in all countries and cities of the world, they would pay an astronomical amount if each click would cost them 1.5 Euros. This would be right, as a travel portal is only a mediator between customer and hotelier, it should not become a competitor of the hotel, changing the rules of the market. Instead it just  happens in this way: It is not true that Adwords works like an auction where the highest bidder is the highest in rank as the single hotelier, even if  increase the budget to be higher in the rank, is still under the so-called "GIANTS", the tourist portals which are always on the top and pay much less. To justify this treatment was created the "Quality Score", a function that evaluates the quality of an Ad based, as the guidelines say, on the "algorithms" and other mechanisms so complex that are out of the control of the advertiser; basically they are a way for Adwords to determine which Ad is better than another, because the higher is the Quality Score and the higher is the performance of an Ad, with the result of a lower cost per click to pay. The advertiser cannot even complaint if he find that another Ad is still high in the rank also if he increase the budget, as Adwords would reply that it probably has a higher "Quality Score".

 

7 Expert replyverified_user

Re: ADWORDS DOES NOT TREAT ALL THE ADVERTISERS AT THE SAME WAY

Top Contributor
# 2
Top Contributor

Hello Andrea425,

 

Welcome to the community and I'm sorry to see you aren't too pleased.

 

I was just wondering how you know how much these portals are paying for each click? If Google were to treat advertisers differently then I imagine they would look to charge the larger companies more rather than less as they have the budgets to absorb the extra cost. I can't see there being any advantage in charging you more and them less purely down to their brand or reputation being more known than yours.

 

My hunch is that they are actually paying significantly more than you due to their budget size. I imagine you are managing your campaigns efficiently but it is also a realistic guess that they have dedicated AdWords managers working on their account which combined with larger CPCs will keep them ahead of you in the ad rankings.

 

These are just points to consider and discuss.


ScottyD, AdWords Top Contributor
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Re: ADWORDS DOES NOT TREAT ALL THE ADVERTISERS AT THE SAME WAY

Top Contributor Alumni
# 3
Top Contributor Alumni

Good morning, Andrea425.

 

I can't address all of your opinions, but let me offer a few thoughts.

 

First, it's a mistake to assume you know how much another advertiser is paying--or to assume that simply because another advertiser has a very large account, they are somehow getting a discount for clicks. The AdWords auction system works on a combination of keyword bid and quality score--the two figures are multiplied to produce an Ad Rank that determines which ads are available to show for a search and where those ads appear on the search results page.

 

While raising a keyword's bid can, yes, improve the ad's positioning, that's a tactic that becomes very expensive very quickly. If you're finding your competitors placing higher than you in the search results, the odds are much better that they've done the work necessary to improve their keyword quality scores, the second half of the ad rank equation.

 

I would suggest that you focus on your own campaign's quality and performance metrics. Make sure your click-through rates are high, your negative keyword list blocks all of the unwanted or inappropriate traffic you can identify, and that you're constantly testing new ads to refine your messaging and improve your results. With work and a solid performance history behind your account, you should see your ad positioning improving.

 

Good luck!


Theresa
Google AdWords Top Contributor
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Re: ADWORDS DOES NOT TREAT ALL THE ADVERTISERS AT THE SAME WAY

Visitor ✭ ✭ ✭
# 4
Visitor ✭ ✭ ✭

Dear  ScottyD,

I hope you are in good faith making these comments. First, are you an advertiser ? Or do you work for Google ? Regarding your question I reply no, unfortunately I have no access to the account of the portals and cannot tell you exactly how much they pay, but I am sure they pay each click nothing compared to the Hotel single advertisers and they are out of the “auction”. I just made a simple calculation, showed as follows: If my Ad pay an average 1,5 Euros for a click and it is not at the top, it means that, if Adwords works like an auction, the portal that is over mine or at the top rank will pay more, maybe 1,8 or 2 Euros for each click. Well, if I receive lot of visitors every day I will collect lot of clicks. At the end of every day my Ad will have dozen of clicks and every month I can have 400, maybe 500 clicks, all at an average cost of 1,5 Euros; it means that I could arrive to pay 1,5 x 500=1.500 Euros, and it could be much more if I did not set my budget. But I advertise my Hotel just for my town, it means one Ad in one town only. The portals, those internationals, advertise all the hotels of all the towns and countries, all over of the world an in all the languages. For each town or village they have an Ad for each language, showing Hotels inside. How many towns are there in the world, villages included ? Thousand and thousand. How many languages translate the portals ? Dozen and dozen.

 

The estimated values are showed as follows:

 

1,5 Euros : Average Cost per click of an Ad.

500 : Average clicks received in one month by an Ad.

6000 (500x12) : Average clicks received in one year by an Ad.

240.000 : Estimated number of cities and villages in the world.

20 : Estimated languages in which the portals translate their Ad.

 

Try to calculate how much a portal would pay every year for all the Ads:

1,5 x 6.000 x 240.000 x 20= 43.200.000.000  Euros, about 57.213.200.000 American Dollars.

 

With this amount a portal would be already failed. This calculation is obviously very rough but it could also be more; however it shows that Portals cannot pay so much for Adwords, considering also that they earn the 15% commission for each reservation. For this reason they surely receive a special treatment and,compared with the single Ad of a town, they pay each click much, much less than the single Hotel advertiser, with the result that they are unfair competitors with the Hotel advertiser. Another proof is the fact that some years ago there was, at the entering page of Adwords, an icon that asked to the beginning advertiser how much he wanted to pay. He had to fill a space divided for price ranges (ex: from 100 to 1.000, from 1.000 to 5.000, from 5.000 to 10.000…) and he had to choose that one relative to his budget. It demonstrate what I say: He had from the beginning a different treatment, based on the business he offered. Strangely this icon has been removed, maybe Google was afraid of the evidence, that someone with this icon understood that the advertisers were not treated at the same way. Better to remove it and create the Quality Score.

 

 

 

Re: ADWORDS DOES NOT TREAT ALL THE ADVERTISERS AT THE SAME WAY

Visitor ✭ ✭ ✭
# 5
Visitor ✭ ✭ ✭

Dear Theresa_Zook,

I reply with the same question: Are you an advertiser or do you work for Google  ? I think it should be better to clarify from the beginning.

Unfortunately I have no access to the account of the portals and cannot tell you exactly how much they pay, but I am sure they pay each click nothing compared to the Hotel single advertisers and they are out of the “auction”. For further information about it please read the message I sent to ScottyD.

 

My opinion is that Quality Score has been created to justify the different treatment between single Hotel advertiser and “Giants”, like International Touristic Portals; maybe it happens not only with tourism.

Basically Google with Quality Score decides which Ad is better than another. Or maybe Quality Score has been created setting the rules in the way that they “sound better” for the big companies, for the big business, that is the same as making a different treatment. Adwords is not transparent and cannot create functions like Quality Score that influence the cost for an advertiser, it is not right. They cannot create rules and algorithms that, if they really work, are so complicated, depending to so many parameters, so difficult to manage for a single advertiser that only a very good engineer or a “genius” of the advertising is able to manage to increase the performance of an Ad. Also in this case it is not right as only the big companies can do it, as they have much money and they can afford to pay a “great engineer”. If there are real rules for the Quality Score they should be clear, transparents, easy for everybody and they must give clear results, not like it is now. Also, what does it mean that an Ad, to be cheaper, must be "more relevant" ? I would see in the case of organic listing that is free and ranking is based on it, but if one pays for an Ad he can write whatever he wants on it, excluded bad or not linear words obviously. Why the Ad must suffer the “judge” of Google ? That is not acceptable, and it explains why Adwords is so unclear and does not treat all the advertisers at the same way.

 

Also, some month ago I tried to apply the guidelines to improve the Quality Score. Result: It did not change anything. I created the most relevant Ad linked to the most relevant keywords. Result: the Quality Score was still the same and Portals were still at the top. Also, in my account there are keywords few relevant for the Ad but they show a Quality Score higher than the more relevant keywords. It demonstrate that Quality Score is just a tale.

You talked about CTR: CTR is high if an Ad has a relevant content and is high in the rank; maybe this second point is more important: It is clear that if my Ad is well at the top rank everybody click at it, so the ratio between clicks and impression is higher, that determines the CTR. If instead an Ad is low in the rank few people will see it, so the ratio between clicks and impression will be low. Also: CTR influence the Quality Score ? It is a circle: The lower is the Quality Score and the lower is the rank of an Ad; the lower is the rank and the lower is its CTR, the lower is CTR and the lower is Quality Score. What rule is it ?  It means that if one is always at the top pay less, has a great revenue and will always be high; if one is low ranked pay a lot, receive few revenue and will be always low. Don’t’ forget that low Quality Score means clicks more expensive. What rule is it ? I don’t believe in Quality Score and I only believe in big agreements made by Adwords with big companies, according to their conveniences.

 

Re: ADWORDS DOES NOT TREAT ALL THE ADVERTISERS AT THE SAME WAY

Top Contributor
# 6
Top Contributor

Hello Andrea425,

 

I am a Google AdWords account manager and do not work for Google, I simply manage accounts for a variety of advertisers including my own personal account. I can see where you are coming from when looking at your averages but you have to remember that these portals aren't necessarily targeting those 240,000 cities and villages on an individual basis, they may either be covering the regions at a generic level or perhaps only targeting a % of the total. You know the industry better than me however and as always it's just a suggestion. I personally can't see them creating a campaign for 20 different languages and allocating a separate budget for each one but other experienced members can give their opinions on that also.

 

I'd like to see other comments made by other members on this thread and see what their take on everything you mentioned is.

 


ScottyD, AdWords Top Contributor
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Re: ADWORDS DOES NOT TREAT ALL THE ADVERTISERS AT THE SAME WAY

Visitor ✭ ✭ ✭
# 7
Visitor ✭ ✭ ✭

Dear ScottyD

Try to make a research on Google: The portals, those International, have a different Ad for each town or little village in each part of the world. They don’t cover regions at a generic level: if you type “hotel new york” their Ad is different to the Ad “hotel new jersey”. Try another research: type “zimmer new york” (it means room in german) in Google.de and you will see a different Ad still for new York but in german language. This happens for all the other language. The number 20 was only an estimated value, it could be more.

I don’t understand what you mean for “however and as always it's just a suggestion”.

I don’t know if other advertiser have these problems. I can say that I make Adwords since lot of years, maybe ten. In my town  I was within the first Hotel to make it and I can tell you that at the beginning Adwords was right, as the Ads concurrency were Hotels only and Adwords really worked like an auction. Not now: With the entering of the portals, they don’t pay each click like the single Hotel advertiser but much less and for this reason they are always at the top; it is completely unright.

Re: ADWORDS DOES NOT TREAT ALL THE ADVERTISERS AT THE SAME WAY !

Top Contributor
# 8
Top Contributor

Hi,

 

You have posted same message a day before.

 

http://www.en.adwords-community.com/t5/Set-up-and-basics/ADWORDS-DOES-NOT-TREAT-ALL-THE-ADVERTISERS-...

 

This is against community rules. Also writing in bold seems your are shouting out loud, which is not advisable.

 

Thanks,

Neha

Neha Gupta, AdWordsTop Contributor Follow Me: My Blog | Twitter | Google+ | LinkedIn
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Re: ADWORDS DOES NOT TREAT ALL THE ADVERTISERS AT THE SAME WAY !

Visitor ✭ ✭ ✭
# 9
Visitor ✭ ✭ ✭

Dear NehaGupta,

I wanted to write the message in the "community lounge" area as I wrote it in the "Set up and basics" area, I don't know why it is showed again in the "Set up and basics". This is why the message is showed twice.

However I will continue to write until somebody will give me a reason to the problem I mentioned: I received two mesages from two persons but when I insist explaining the things in deep and demonstrating what I say they don't reply, and the reason is because they know that I am right. Basically they don't know what to say.  Also you, replied to me not to talk about the problems I mentioned in the messages, but just to tell me that I am against the rules, just because I write twice and I write in bold.

I also find very unright that Google Adwords, and Google also, does not assist its advertisers. I wrote directly to the contact page but with no reply. We are obliged to write in this stupid Forums, like prisoners that can only talk with themselves.

Also, we are not able to know if some person that reply is an advertiser like me or work for Google, you included.

 

 

Re: ADWORDS DOES NOT TREAT ALL THE ADVERTISERS AT THE SAME WAY

Visitor ✭ ✭ ✭
# 10
Visitor ✭ ✭ ✭

Dear ScottyD,

I wrote you a message. Why you did not reply ? Do I have to suppose that say nothing means I am right ?