Artificial Intelligence for PPC Advertising is Irrational

All things being equal, do you beleive Google will benefit you more than it will benefit your competitors?

Some people seem to think that Google is their friend – that it is some kind of egalitarian computer system. I have news for those people. Google does what it does to make money – from you.

Google encourages you, at every turn, to use their Machine Learning to manage your pay-per-click ad campaigns. This automotion doesn’t cost you anything extra. Afterall, you can then do-it-yourself, with the implicit suggestion that you will even get more for your ad spend. Eazy pezzy!

The Pitch

“You mean I can just click a button and Google will take care of everything, and I’ll get more sales for my money than I was getting before?” The pitch seems too good to be true, right? Thats because it is. Lets start with some critical thinking. (Something you are not supposed to do these days)

Number 1

“If I click the button and let Google run my ads as it sees fit, what happens when my competitor does the exact same thing?” Exactly. Egalitarian. (I think that is also called communism)

Which means you would not mind evenly splitting your sales with all your competitors. Would you? If so, the only tool you can then employ is SPEND – spending more than your competitor. Its a blunt instrument. And it plays very well into Google interests. And you can guess where this road leads.

Number 2

What is Machine Learning? Sounds almost magical, doesnt it? – as if it’s beyond comprehension by we humans. Well it’s also called Artificial Intelligence. All these buzz-words are marketing terms for something that has been going on since the 1950’s. Its called programming computers. Its writing instructions (software, code) that makes computers calulate. They calculate – nothing more – following instructions written by people. People write that software.

Number 3

“But I am seeing better performance. Im getting more clicks for my money.”

Dont you think that is part of the plan? Google is not dumb. Those instructions have also been written into the Machine Learning. Prove the pitch is true with increased results…for a time…until enough time passes and its been forgotten. All you have to do now is increase your budget – maybe get more sales, pay your credit card bill every month and hope you remain profitable – fingers crossed. What could be better than a constant revenue stream (that has been set-and-forgotten) and that only increases occationally?

Number 4

Is Google’s machine learning? Yes. Its learning about your entire marketplace, your margins, etc, so that Google can make the most money, while allowing you to get by. It’s an old strategy – maximize returns without loosing customers. Google’s Machine Learning is really learning how to make the most money, following instructions written by people. People write that software.

Conclusion

Just because you don’t understand how to do the same, does not mean you should switch off your brain and follow instructions.

If you had the skills to write the software that calculates the correct bid price for a keyword, so that you get more sales than your competitor – then you wouldn’t need software provided by Google to run your advertising, would you?

Our Pitch

We do calculate the correct bid price per keyword so you spend less, get more sales, and maintain your margins.

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