Google profits soared dived then soared again and soothsayerers are exclaiming that though this stock is gold it must be close to over performing; so what would justify something like this : PPC on Google is Finished.

Well it could be a little further from the truth, ha ha, but not much. In reality, Google’s stock isn’t exactly roaring ( nobody’s is at the moment ) but the latest online Neilson polls show Google with a commanding 63-71% of the market place and continuing it’s slow but relentless climb.

What’s good for the goose isn’t always good for the gander and in this case what is good for Google hasn’t always been good for the advertisers. For those without knowledge of how its done – Google’s advertising is done based on a highest bidder system.

If you normally have 1200 potential buyers at your saturday afternoon car auction then one bright saturday afternoon 40 additional truck loads of happy go lucky gamblers stop by on their way to the casino, well are your cars going to be auctioned for higher or lower prices?

One had truly hope that they beeline for the bus doors immediately afterwards, because if they wander over to join the auction, the prices of all vehicles will go uphigher and higher. And was this good for you or the Auctioneers? You already know the answer to that one.

If those cash rich players on the way to the local casino actually don’t spend all their time in the bathroom, they are likely to bid on a few cars just for the hell of joining a live gambling arena.

So, now you understand what we mean by the death of pay per click? When there are too many bidders bidding for the same set of keywords, the price is going to go up. Some of the bidders will have deep pockets and nothing else.

This is exactly what happens when many corporate buyers run in and bid up keywords without taking the time to seriously learn the craft.

What is currently happening to many of your campaigns that were turning a fair profit just 4 months ago? How about those absolute winners that you have had running for a couple years? You have adjusted, pruned optimized and now there is very little left you can do. The frustration sets in and you are regretfully pause the campaign. Its now, no longer profitable.

Not funny right? But this scenario is being played out all over the pay per click world all day long.

Recently, I attempted to help out a real estate friend of mine. His name is Randy. A new condo release had put the marketplace into a frenzy. On Sunday, Google stats said there were too few searches to predict numbers.

By Friday of the same week, Google was reporting over 9,000 searches on just 3 related key phrases – Fly condo, Fly Condos and Fly Condos Toronto.

Not only did the competing real estate agents bid the Google prices above the dollar mark, but they also clicked on each others ads by the thousands. I know this because several of them filled in my form after clicking on my ads too. In the meantime, my Yahoo costs stayed serenely under 15 cents per click.