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Friday, January 28, 2005

AdWords API Could Have Subtle Effects

It's official: Google has released an API for AdWords. There is a lot to think about there, but it's safe to say the most obvious impact will be a proliferation of campaign management apps, particularly customized and piecemeal ones developed in-house. A key here is that the more you spend on AdWords (either as a single firm or as a manager of multiple accounts), the more free access you get to the system. No doubt there will be a lot of speculation as to what impact that might have on the marketplace for tools and such. For now, the bottom line seems to be that (once your tool is built) the ability to (for example) change bids throughout the day is tied to what you've got at stake as an advertiser. The key word here is "appropriateness." It's highly inappropriate to overmanage a $30/day account with high-powered tools when you could do it just as easily by hand. By contrast, a $1,000/day spend needs much more interaction and frequent checking. It makes sense to automate some of this if it's done intelligently.

Advertisers will definitely face a lot more interesting build-or-buy questions when it comes to custom account management tools. Many probably won't rule out "build." AdWords is that important to so many marketing budgets today.

Posted by Andrew Goodman




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