Google Adwords - who sets the prices?

EMAILED TO GOOGLE:

Hello - The price for the keyword "Armenia" is 10p according to Google, but there is only one other advertiser advertising with this keyword, so why is the cost of the keyword set at this price?

Who is setting the prices, Google or advertisers?

The price is obviously too expensive because as a country name only myself and one other advertiser can afford to purchase it as a keyword.

Well, I can only afford to buy it for one day at that price, and have now deleted the keyword. If the price dropped down to around 5p then you would find more buyers, in which you case Google would be earning money, instead of having a search page virtually devoid of any banners.

So who sets the keyword prices, and can the price of this keyword Armenia be lowered so that more than on advertiser can afford to pay for it?

--

Yours faithfully,


John Aidiniantz

www.funbus.org - The Campaign for Battery-Operated Buses

Google sets the minimum bids according to their 'research'...sorry...i
dont think its negotiable

Well this keyword "xqpple" is in a minority of 1 - in other words Google has only one page in its entire index with this word.

The cost for this word is .08p which obviously must now be Google's minimum. Yet although the word is meaningless unless you happen to live in "Xqpple", it is only 2p less than more popular keywords.

Furthermore, how can Google live up to its promise if I now log in under a second account and use their famous "Adwords Discounter" tool to enter the keyword?

According to their promise, the tool will list my banner "only one penny less than the next highest advertiser" - but what comfort does this bring to the advertiser if there is actually no real competition with other advertisers, but rather one is simply incurring costs at prices which are being controlled by Google?


www.funbus.org - The Campaign for Battery-Operated Buses
www.spooofbay.com Take the Spoof Test before you get Spoofed!


"dtodorova" <lili.grozeva (AT) gmail (DOT) com> wrote

Google sets the minimum bids according to their 'research'...sorry...i
dont think its negotiable

EMAILED TO GOOGLE:

Hello - The price for the keyword "Armenia" is 10p according to Google, but there is only one other advertiser advertising with this keyword, so why is the cost of the keyword set at this price?

Who is setting the prices, Google or advertisers?

The price is obviously too expensive because as a country name only myself and one other advertiser can afford to purchase it as a keyword.

Well, I can only afford to buy it for one day at that price, and have now deleted the keyword. If the price dropped down to around 5p then you would find more buyers, in which you case Google would be earning money, instead of having a search page virtually devoid of any banners.

So who sets the keyword prices, and can the price of this keyword Armenia be lowered so that more than on advertiser can afford to pay for it?

--

Yours faithfully,


John Aidiniantz

www.funbus.org - The Campaign for Battery-Operated Buses