The Paid Search world was in a tizzy last week over the announcement of Google’s beta testing for its new Automatic Matching (AM) feature for AdWords. Below is Google’s explanation of the tools’ functions, and just for fun, see if you can guess what two words triggered the uproar.

“Automatic Matching automatically extends your campaign’s reach by using surplus budget to serve your ads on relevant search queries that are not already triggered by your keyword lists. By analyzing the structure and content of your website and AdWords campaigns, we deliver more impressions and clicks while maintaining your current CTRs and CPCs.”

So with the news that Google would be using advertiser’s “surplus budget” to fund this feature, the paid search blogosphere exploded with claims that Google will inevitably thrust a money-grab onto its advertisers. Compounding these claims was the ComScore report that came out a day before the AM tool was announced showing Google’s advertisements in the US last month were down 0.3% year-on-year.

So is this a money-grab, or is this just remarkably bad timing for a feature that could benefit Adwords advertisers? In an attempt to reason with the angry mob I’ve listed some quick pros and cons. Hopefully this post will save a liquor store or two.

PRO: This is only a beta test that a small, select number of advertisers are using, and can opt out of at any time. In fact I think this is the biggest pro of them all because after feedback is given, Google can either tweak AM’s problems or ultimately scrap the tool leaving it in the same boat as Googlesheets.

CON: Relevance is not measured by the advertiser. In an example as to how the feature works Google states: “If you sold Adidas shoes on your website, Automatic Matching would automatically crawl your landing page and target your campaigns to queries such as: “shoes” “adidas” “athletic”, etc., and less obvious ones such as “slippers” that our system has determined will benefit you and likely lead to a conversion on your site.” While I’m sure the AM does not override negative keyword listings will the potential leads/sales for unrelated search terms without a bid be worth an individual advertiser’s spend?

PRO: Relevance is not measured by the advertiser. While paid search vets think they can out smart a machine (and most can), a regular mom and pop user with limited experience is usually bidding on a small amount of keywords because they simply do not know any better.

CON: If an AM search result click does not turn into a lead or sale, it’s ultimately Google’s fault, and you end up paying for their mistake

PRO: The AM queries will appear on you search reports, which in turn will provide a source of untapped keywords to monetize.

CON: Nearly the same results can be gleaned by using Google’s keyword research tool without having to risk your budget’s surplus.

PRO: There has never been a time when AdWords has forced advertisers to use a feature that directly benefits their bottom line.

Yes, AM does siphon funds out of a budget surplus, but if you choose to add this feature it’s ultimately your decision. Furthermore Google states that, “AM will never exceed your budget.” While results of this test will more than likely vary across the board I’m sure a certain amount of advertisers (probably small time) will find this tool helpful, while other, experienced advertisers will choose to opt out and run their own campaign.

This entry was posted on Wednesday, March 5th, 2008 at 12:25 pm by Cobo and is filed under Search Engine Marketing, Google, Online Marketing, Paid Search (PPC), SEM Tools, E-Commerce, SEM Tests. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.