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Google Launches Enhanced CPC for AdWords
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Google has announced the launch of Enhanced CPC, a new automated bidding feature in AdWords, aimed at helping users improve ROI on campaigns with manual bidding. It uses the campaign’s historical conversion tracking data to automatically adjust the Max CPC bid based on the likelihood that the ad will convert.

Google says this should lead to more conversions while reducing the overall CPA. Take a look at this video:
 

eBay Affiliate Program Goes from CPA to CPC
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eBay has announced "Quality Click Pricing" for the eBay Partner Network affiliate program. The company describes this as a new payout structure designed to further reward affiliates who drive incremental transactions on eBay, and who send "value buyers" to the company’s sites.

CPC Declines on Big 3 Search Engines, ROI Strong

Average cost-per-click in the US declined last year on the big three search engines according to research from Efficient Frontier. Google’s fell 14%, Yahoo’s fell 16%, and Microsoft’s fell 28% over a year’s time (via CNET). Essentially the study indicates that less money was spent per search ad.

Companies Collaborate to Define Clicks
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Interactive Advertising BureauThe Interactive Advertising Bureau (IAB) has announced the release of Click Measurement Guidelines, a document establishing parameters for buying and selling cost-per-click (CPC) adver

Utilizing Match Types Can Save Your SEM Dollars
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Google’s been offering some great AdWords tips lately. Specifically, they recently discussed the advantages of using the broad match option and the negative keyword option. Mike McDonald also spoke with Ken Jurina of Epiar about the negative keyword option in the following interview at PubCon.

MySpace Announces MyAds
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Last month, we reported that MySpace had launched a new self-serve advertising platform, but it was officially announced last night with a name – MyAds (beta). With this platform, users are able to create their own display banner ads with the following advantages working for them (as cited by the social network):

Son of Click Fraud: Cookie Stuffing
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A phrase like “cookie stuffing” sounds like it could have only pleasant connotations: Cookie Monster cookie-stuffing his face; ice cream with cookie stuffing; the cream between Oreos. Leave it to a lawyer to run that for everybody.

Clicks Down, Revenue Up On Google

LeeAnn Prescott, EfficientFrontier’s director of research and communications and WebProNews’s favorite statistician, concurs with comScore’s recent bombshell that the number of paid clicks on Google were down in January. Wall Street’s pummeling of Google’s stock, however, was "an unnecessarily strong reaction."

Google Sacrifices Clicks To Increase Advertiser ROI
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Google investors are still at the table eating their losses after comScore’s report that paid click revenues were flat in the month of January. Impending recession was the chief suspect among speculators, but nobody finds any real support for that. More astute observers noticed that revenue flattened very soon after webmasters began reporting on decreases in AdSense earnings.

Google Headed Back Towards Average?
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I don’t usually follow sponsored links when doing research (intentional ad blindness), but people are getting better at getting my attention. Mark Hines at Vestopia targeted GOOG and bragged via AdWords that he sold out at $741. Click and he’ll tell you why.

CPC Is Flat, But People Are Still Shopping

Speculation as to why Google’s paid clicks have flattened in January has led to further speculation that a recession has caused consumers to do less search-initiated shopping. Hitwise’s Bill Tancer has information that suggests otherwise.

(It occurs to me also that investors have been spoiled by Google’s constant growth, as even when Google grows there is disappointment that there wasn’t more growth. And flat returns now might as well be declines. Regardless, I suppose market corrections are inevitable. It just sucks if you bought in at $747 per share.)

Could CPA Overtake CPC?

That is the question that Aaron Goldman discusses in his most recent post at Search Insider. Aaron provides some sound thinking as to why CPA could overtake CPC in the future as the preferred way in which to purchase paid search.

HealthPricer Sees CPC As Near Death

Cost per click? Even the resources of HealthPricer can’t find a cure for the demise of CPC, as cost per action (CPA) becomes more appealing to retailers.

Facebook Killing Google, Chapter II: Flyers

Facebook Flyers Pro, the advertising program offered within the Facebook social network, could be a fascinating competitor for AdSense for a few reasons.

I’ve Had It With Google Conspiracy Theories
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Okay people, enough is enough.  I can’t go through a day anymore without reading some article or other about how Google has been seduced by the power of the dark side.  It’s debunking time. 

Reprise: Small Budgets Pay More With Panama

Among the analysis of Yahoo’s new search marketing system by Reprise Media came the revelation that smaller monthly spenders have seen cost per click prices rise.

Some People Will Click On Anything
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Pose whatever theory you like as to why, but an AdWords experiment revealed that people will click on just about anything – even if the ad tells them their computer will be infected with a virus if they do.

AdWords Introduces Preferred Cost Bidding

AdWords introduced a new bidding option called "preferred cost bidding," an alternative to setting a maximum cost-per-click (CPC). In essence, for the advertiser with less time and/or fewer resources, the option puts AdWords management on Google’s shoulders.

Google Sneaks Embedded Text Link Ads Into PPA
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What’s been called an assault on click-fraud, or affiliate networks, or both, could also carry with it a little controversy. Google’s recent beta launch of pay-per-action AdSense, available only to US advertisers, was released overtop another new product: the text link format ad unit.

Microsoft Adcenter CPC Bug

As reported over at the SEroundtable and discussed on both WMW and Digital Point Forums, there seems to be a big problem w

AdWords CPC Price Gouge Bug Fixed?

Search Engine Roundtable has reported the fixing of Google AdWords CPC Price Gouge Bug. The bug pushed up minimum bids to unnatural highs for some keywords. Webmasterworld members have reported relative normalcy over the weekend.

my accout is 75% or more back to normal.

Google’s Greed Over a Rollback

Google recently announced they were updating the Adwords Quality Score, however it appears that there is a bug that raises the prices form any advertisers:

Google AdWords Quality Score Has Major Bug

Google AdWords Adds Quality Score Column & To Improved Quality Algorithm from Wednesday warned us of the new changes coming but apparently there is a bug that makes good performing ads prices spike through the roof.