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Google Adwords’ Ebay Problem

October 16, 2009Domaining, Domainnamewire, eBay, google, google adwords, UncategorizedComments Off on Google Adwords’ Ebay Problem

Google Adwords making online advertising easier for local businesses.

Google Adwords is now testing a simple, flat rate advertising option for local businesses. Local businesses pay a flat monthly fee for their ads instead of dealing with keyword auctions.

Why? Google Adwords is complicated if you’re not an experienced user. And many small business owners aren’t experienced Adwords users, let alone experienced internet users. Here’s a quote from Google VP of product management Susan Wojcicki in AdAge:

“When we talk to small businesses, they don’t always want to know what an auction is, how to create an ad, or bid on keywords, it’s complicated, so our goal has been to, ‘How can we make this really simple for them where they just pay a flat fee per month’”.

I call this the “eBay problem”. When eBay first came out, it was a nifty auction site. But then it got very complicated, both for buyers and sellers. People like simplicity, and eBay is anything but simple. Over time, people decided they didn’t want to deal with auctions and wanted simple, instant gratification. Hence eBay’s move to fixed price sales. When I buy on eBay now, I don’t even look at the auction tab. I just use BuyItNow. It’s simple, I get what I want now, and I don’t have to deal with the auction process.

Google is effectively creating a two-tier system similar to eBay. There’s the advanced option for people who really want to get the most out of Adwords, and then the fixed option for those that don’t have the time or interest in running up the learning curve.

This is a trend I’ve noticed over the past few years: A move away from complicated, all-inclusive systems and a market niche for simple, just-get-it-done technology. There’s a big business opportunity here.

© 2009.

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