Google Australia’s $75 stimulus package has been met with a tepid response.
The company announced the introduction of an incentive program targeting small and medium businesses. It offers new clients a $75 advertising credit towards Google AdWords.
The system works by placing advertisers’ brief ads against users’ queries on the search engine. Clients are charged per click rather than a lump sum bill with the price of each click determined through a keyword auction.
Adelaide-based company, Calvert Technology, did not see this kind of advertising as viable in its capital city.
“The Adelaide market is quite different to other capital cities,” Calvert Technology, Dean Calvert, said. “It is very much a referrals and word-of-mouth market, so where as we have played around with online advertising in the past we get very little traffic from the web side of things.”
Even with the bonus credit in mind, OEM Supplies sales manager, Craig Keir, did not consider Google AdWords to be a good investment.
“We find that there are a lot companies in our industry and $75 is not going to get us to the top of the list,” he said. “The money we need to throw in and the costs involved to get ahead of the list is more than what we are willing to put in for a return.”
IDC analyst, Jean-Marc Annonier, considered the promotion to be a positive step but was concerned that Google had missed the point.
“I think the bigger issue here is the implementation of a marketing campaign,” he said. “It is one thing to pay for AdWords and another to pay someone to design an online search marketing campaign, which is where most of the cost comes from.
“There are a lot of businesses who don’t know how to do this and even if they are going to get a discount it is not going not to help them know how to effectively use it, such as how to improve Google rankings to get more exposure for an ad.”
While Google Australia is offering existing advertisers two special master classes on search marketing campaigns instead of the monetary incentive, new customers will not be eligible for the course.
Google Australia’s AdWords incentive ends in June.