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Company X makes budget of $200k a quarter to buy ads. Agency Y setups up ads in Google, a budget and a keyword. They then tell Company X they got a certain amou

Company X makes budget of $200k a quarter to buy ads. Agency Y setups up ads in Google, a budget and a keyword. They then tell Company X they got a certain amount of referrals/traffic/clicks/what ever. Google increases ads 5% or 10% Agency Y reports 5% or 10% decrease from last quarter. Company X goes well that's not great. Agency Y makes changes, Google changes back 5-10% change, next quarter it goes up. Company X goes great! Google just made 5-10% extra an entire quarter. Rinse and repeat. Basically 5-10% is nothing, nobody would really notice. General traffic would probably change 5-10% every quarter, same with spending habits and other factors.

r0m4n0 3y ago
That's the thing though, with the Agency Y making changes. They would have to go back and ask for more money than before... which I just don't think that's happening (at least that's not what I do). I'm speaking from a place where I purchase ads for my product and know someone else who does as well. We just budget a set amount on ads with an agency and then measure what we get out of that. If it's worth it, then it's worth it for us. The tuning of 5% up and down doesn't really effect how much I spend per se. I only have so much to spend on that type of marketing. I guess the more expensive it is the more it grinds into profit margins because those clicks go down. At one point though, it isn't profitable to market there anymore and I move onto something else, which wouldn't be what they want I would assume? That's where the ad "market" comes into play. The market decides the price supposedly? Is the argument that there is nothing else to move on to when they fudge the price?
- cyanydeez 3y ago
  It doesn't factually matter what the customers budget is. They being sold less product for a high price and their tools to identify that are manipulated opaquely.

r0m4n0 3y ago

That's the thing though, with the Agency Y making changes. They would have to go back and ask for more money than before... which I just don't think that's happening (at least that's not what I do). I'm speaking from a place where I purchase ads for my product and know someone else who does as well. We just budget a set amount on ads with an agency and then measure what we get out of that. If it's worth it, then it's worth it for us. The tuning of 5% up and down doesn't really effect how much I spend per se. I only have so much to spend on that type of marketing. I guess the more expensive it is the more it grinds into profit margins because those clicks go down. At one point though, it isn't profitable to market there anymore and I move onto something else, which wouldn't be what they want I would assume? That's where the ad "market" comes into play. The market decides the price supposedly? Is the argument that there is nothing else to move on to when they fudge the price?

cyanydeez 3y ago
It doesn't factually matter what the customers budget is. They being sold less product for a high price and their tools to identify that are manipulated opaquely.