Google’s market cap dropped $24 billion in 30 minutes yesterday. The aftershock so stunned Wall Street, market trading halted for two hours.
Reason why: Google’s printer accidentally published Q3 earnings 5 hours early (OOPS!!!). AdWords revenue was 3% below targets and income was down. BAM – the entire company’s value plummets 9% in minutes.
If Google dumped you for a handsomer boyfriend in the past, I betcha sometime in the next 3 months she sends you a “I’m sorry for my past sins, maybe we could meet for coffee” note.
The Wall Street hurricane is all relative of course. AdWords revenue is still up 17% over last year. And Wall Street is totally psycho, cuz they reward you not for winning the baseball game, but for predicting the number of home runs in advance.
But it’s no matter, because Wall Street is Wall Street. Seriously, you can expect more cooperation from Google now. If you got banned, give it another shot.
***Important note about Google bans: If you sell something that’s NOT edgy – like 300 ton industrial presses or baby seats or dance lessons – you have nothing to worry about. The people who get hassled by Google are people in legally turbulent categories like alternative health, diets and business opportunities.***
Dave Chappelle wrote a 5-part expose, “When Google attacks legitimate businesses,” largely based on interviews with Planet Perry folks:
This pendulum swings one way, then the other. Get used to it. The reason Google bans accounts is that the Federal Trade Commission holds THEM responsible for what YOU do. (Most people don’t know this.) After hundreds of millions of dollars of fines, Google is gun-shy.
But now that they got hammered for missing Wall Street projections, they’re gonna put more elbow grease into vetting edgy advertisers. Perhaps they’ll decide you’re really not a criminal after all.
OK, so what should you make of all this?
I have ALWAYS ALWAYS ALWAYS warned advertisers – literally from day 1 – that the whole point of building an AdWords account is this:
Use their consistent traffic to build your sales machine. SO THAT you can go out and buy traffic from OTHER places. Ideally, everywhere that sells advertising: Online, offline. Banner ads, affiliates, print, direct mail.
When you do that, you dominate your market. It’s as simple as that. I have THOUSANDS of students who dominate markets and their testimonials are plastered all over my website. Lemme tell ya, it’s easier and WAY more fun to be #1 in your market than #5. Way easier.
I’ve been banging that drum for 10 years.
Most people don’t listen. Too bad for them. They become poster children for the E-commerce Darwin Awards.
Google AdWords is still the world’s most fabulous direct marketing machine. Time spent mastering AdWords is NEVER a waste of time, no matter how ‘Jerry Springer’ the fist fights get.
But Google is NOT your mother. She will not kiss your boo-boos. If you sell edgy stuff, Google is a psychotic girlfriend in a slender black dress who kicks you to the sidewalk on a moment’s notice.
My advice to you: Use your psychotic girlfriend to build your flirtation chops. And when she dumps you, make sure you’ve got other horses in the stall.
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