web stats

Startup Chatter by Donna Bogatin

StartupAlpha.com Technology Strategy & Entrepreneurship Magazine

Google: Rig FCC Auction, Inflate AdWords Bids

By DONNA BOGATIN • Apr 4th, 2008 • Category: BIG PICTURE

Google falsely claims to SEC regulated Wall Street that there is no limit to how high it can drive advertisers to bid up their own AdWords auction rate cards. It is not surprising, then, that Google would apply its Google-centric, black-box, Google rules any auction it runs or participates in mentality to a multi billion dollar U.S. government auction.

Google lawyers proudly share with the world how they executed a calculated, deliberate plan to manipulate the bidding for U.S. government FCC regulated “spectrum”:

Google’s top priority heading into the auction was to make sure that bidding reached the $4.6 million reserve price that would trigger the important…conditions (which support the Google business model).

In fact, in ten of the bidding rounds we actually raised our own bid, even though no one was bidding against us, to ensure aggressive bidding.

Google also ensures aggressive bidding daily by hundreds of thousands of advertisers who subject themselves to black-box, Google run AdWords auctions built around non-transparent algorithms designed to support the Google business model goal of achieving run away inflation of Google CPCs.

Google may have won the FCC auction, by deliberately losing, but Google is REALLY losing its campaign to find high quality brand advertisers willing to play by Google’s self-interested, AdWords inflating, Google ALWAYS wins auction rules.

READ MY EXCLUSIVE REPORT: EX-GOOGLERS BUST GOOGLE SEM BRAND BATTLE

ALSO: FREE INVITATION TO WIN THE STARTUP LOTTERY IN SILICON ALLEY MAY 13

Tagged as: ,

DONNA BOGATIN is the Founder & CEO of STARTUP ALPHA
Contact This Author | All posts by DONNA BOGATIN

COMMENTS: First time commenter? Initial comment will be held for moderation.