Google Penalizes New Adwords Accounts

I just finished reading a fascinating blog post on how Google Adwords penalizes new accounts by making them bid higher to establish a “good history”. For new advertisers to Adwords, or for any new account for that matter, this means you might have to overbid and lose money to get the account established with a good history, before you actually see any returns. I am sure that many new advertisers have been completely put off by this because they setup a new account and get started, but they see no results. If you bid too high you get no ROI. So, when you open a new account you have to bid high for the first few weeks, to establish a good history, even if you end up losing money. In the long run the increase in the quality score on your account should make up for this by lower click prices.

Thanks go out to Mind Valley Labs for running this test, proving the importance of account history in Google Adwords. This is something a lot of us have suspected for a long time. Read the full post: Shocking Results! How New Google AdWords Advertisers Get Crushed (Test Results Are In!)

One Response to “Google Penalizes New Adwords Accounts”

  1. I also read the Mind Valley piece on this and I’ve produced my own results (to show the same point) in my blog - http://www.insiders-view.co.uk/google-adwords-punishes-new-advertisers/006. It does make you wonder where this fits into Google’s other activities where they are producing tools and data for entities both large and small.

    Makes you wonder how the ‘local’ businesses (which Google seems keen to help) or new advertiser entering a market can establish themselves.

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