AdWords goes to a pay-per-use API system
The AdWords announcement says the change will happen on July 1st, 2006 and will include a $0.25/1000 units charge. There’s been plenty of speculation about whether this was going to happen but now we finally have an answer.
This was certainly the best thing for Google. They gave four reasons for the change:
- Flexibility and scalability
- Commercialization
- Standardization
- Efficiency incentive
I have to say flexibility is the biggest win for me. My quota has run out before and led to some major headaches. I’ve run a few numbers and the quota charge will be around 0.5% to 1% of the total revenue for a campaign. This is negligible but I’d still like to see it fall. This could be accomplished two ways:
- Work harder at reducing quota units used
- Work harder on increasing revenue
I think everyone would be better served by me working on #2.
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