Google profits are soaring and pundits are exclaiming that though this stock is gold it must be close to over performing; so why would anyone make a statement like this : Pay per click Advertising in Google is Dead.

Well it could be a little further from the truth, ha ha, but not much. In reality, Google’s stock isn’t exactly roaring ( nobody’s is at the moment ) but the latest online Neilson polls show Google with a commanding 63-71% of the market place and continuing it’s slow but relentless climb.

Would Google’s popularity hurt the customers? No, its a win win for them with more advertisers, more choices and google pumping more resources into faster servers etc. How would this work at a auto or car auction if the bidding area was suddenly flooded with triple the number of bidders. Bidders who perhaps stopped off on their way to a casino ? Would the trucks be cheaper or more expensive?

So now you understand the position of those buying from Google’s keyword bidding system. The more competition is the bigger the profit for Google and the more that the bidders get raked over the coals. And for us poor sods who are purchasing – is the more expensive the cherished keyphrases are per click.

Perhaps the rumor of the demise of Pay Per Click really applies to the only group actually hurt by Google’s increasing ad revenue stream – those that find themselves with 3 times as many angry competitors bidding for the same keyphrases.

If those cash rich players on the way to the local casino actually don’t spend all their time in the bathroom, they are likely to bid on a few cars just for the hell of joining a live gambling arena.

So, now you understand what we mean by the death of pay per click? When there are too many bidders bidding for the same set of keywords, the price is going to go up. Some of the bidders will have deep pockets and nothing else.

Rich gamblers getting off the bus and bidding on the dream car you have been waiting months to see roll down the auction line is going to make you real happy right?

How about paying 10 dollars per click for the keyword „marketing“? A little too expensive right? ( and broad while you’re at it, lol ) Just 101 clicks later and you have topped the magic thousand dollar mark. I hope you have a real expensive product to sell, ha ha.

Not funny right? But this scenario is being played out all over the pay per click world all day long.

Suppose I told you that while a few of us having been noticing this trend lately, that a few guys have been taking action. A few weeks ago, while consulting for a real estate friend, Randy, I noticed that over 40 real estate brokers were bidding in Google for 3 key phrases and almost no one in Yahoo.

By the end of the week, my Google adwords account had recorded just less than 10,000 impressions on just 4 popular search terms. My Yahoo Search marketing account had barely cleared a thousand.

Nimbly and joyfully the gang of 40 plus real estate agents in Toronto bid the pricing above the 1 dollar mark, while the Yahoo search costs stayed under 10 cents.