Google AdWords by Volume Discounts

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Many new Google AdWords account holders wonder whether there is any way to save by volume discounts with AdWords. It seems to them that a large financial commitment might be less costly per click through.

Right away, 2 notes should be mentioned on the broader subject of economy on scale or simply economy.

1. It is a ppc agency toronto story that e.g. travel comparison site cheapflights.co.uk approached the AdWords Account Management and Maximiser Team about driving a high volume qualified stream of traffic to their sites. As a result, the company found a 45% return on ad spend with AdWords. Though it is reported to have been achieved mainly through joint optimization efforts rather than as a discount in favor of big pockets, it seems evident, this option is only available to the big guys with a large financial commitment.

2. An approximate 30% indirect discount on ad spend might be realized if you sign up for both the AdWords and the Google Checkout programs provided this solution fits your business model. Checkout is a service that makes buying and selling across the Internet fast, convenient, and secure. The point is that as you run your AdWords ads you accrue credits that trim back your Checkout bill.

I know the above are not exactly what account holders have on mind. On the other hand, I think that direct volume discounts relative to auction pricing could be pretty unusual; not to mention all those ad traffic aggregator agencies that could be swarming all over the web by now. Still gossip emerges from time to time that Google perhaps pays rebates to large agencies in the EU or Asia.

It might sound disappointing for many, but the real "discount" is entirely down to achieving a high CTR, through a combination of targeting ad groups, selecting effective keywords, and making use of negative keywords etc. In 2006, a friend of mine was able to get one large client to about 9th or 10th in their State for a spend that was 65% as much as the lowest spender in the top 20 - but they ran up to 4000 unique ads to do it - that's really a lot of efforts.

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