Google Places Per-Basis Charge on Keyword API
Google recently announced plans to begin charging search marketing and bid management companies on a per-basis plan for use of its AdWords Application Programming Interface. The new system, which will take effect on July 1st, could pose serious implications for the search marketing industry.
The API, which used to allow a limited number of free keyword bid calls per hour, will now cost 25 cents per 1,000 times it is used.
“We are changing the quota allocation system and pricing model to create a more flexible and level playing field that encourages efficient coding and application design,” Google product manager Rohit Dhawan said in the company’s blog. “As a result, current developer quota caps will be removed in order to provide a more flexible and scalable system for quota allocation and consumption.”
Bid management firms, which currently place API calls habitually many times over the course of an hour, will be dramatically impacted by the change. Once a critical component of the keyword marketing model, these companies may now be faced with major recession, as marketers search for new ways to optimize their campaigns beyond the dynamic control of keyword bids.
Reader Comments.
I wonder how much people realize how much this API cost will actually affect the industry.
Taking into account actual token utilization rates, some of the API call cost more than others. For instance:
1. Adding a keyword: 50 tokens
2. Adding a text ad: 250 tokens
3. Updating data: 1 token
4. Getting a report: 1000 tokens.
With our analysis, the cost of Google is estimated to be 25x of Yahoo. Even though Yahoo charges .30 / 1000 calls, and Google charges .25 / 1000 calls, the tokens will be used much faster in Google. This is going to impact SEM in a major way.
Jim Semon
801-634-8923
Product Marketing Manager – SearchCenter
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