Google AdWords Coupons and Its Business Model

So you may be wondering why we aren’t distributing Google AdWords Coupons any more. Well we tried to use them, distribute them, increase our business with them, but we ran into problems.

Why we don’t think Google AdWords Coupons are effective

Since ColdAd™ joined Google Engage for Agencies, we have distributed many online and offline Google AdWords coupons to our clients, friends and families. It gives them a $100 opportunity credit to test online advertising. However, in the past two meetings that I had at Agency gatherings and SES Toronto (June 11, 2012), I mentioned some business model issues to Googlers. To show you why these coupons are not effective, let’s look at the Google terms and conditions:

• Promotional credit must be applied to a new AdWords account within 15 days of creating the account and is valid only for new customers;
• It is valid only for new Google AdWords customers with self-managed signup accounts;
• One promotional credit per customer;
• Offer valid only for signups through the URL provided for the promotion by customers with billing address in the US or Canada [1].

At ColdAd™, we really could not use these coupons because of following reasons:

• Most Canadian companies have gotten and used at least 5 of these coupons. So there is no valuable offer through sending them out to attract new clients;
• Most of our clients, friends and even families have tried to use a Google AdWords coupon. And after they had launched one campaign and bid $25 on an ad and gotten 4 visits, their credit was done! What’s more, for these clients, we can not offer another coupon because they are now no longer considered a new account;
• If the client is a small business looking for even a $100 Google AdWords coupon, they may not even have a website (or the website does not support a landing page for a single ad campaign). On the other side, a medium/large company with a proper website is not interested in a $100 coupon;
• There is a significant challenge to how much we can charge a client based on the AdWords campaign.

By the way, ColdAd was used to distribute these coupons to clients who encountered these very conditions. In every meeting, by mail, by email and by Google Agency Page, Google sent us these coupons.

Google suddenly changes their conditions for AdWords Coupons

But then, on September 25, Google sent us the following email:

We want to make sure you’re aware of some important changes to Google AdWords coupons and how they’ll work in the future.

Beginning today (September 25th, 2012), you’ll be able to offer your clients advertising credit after they spend their first $25 on AdWords. We believe businesses that invest a small amount in their AdWords campaigns are more likely to be successful, especially with your expert guidance.

What that means is any coupons you currently have will only work through September 30th, 2012.

So great: Google changes the conditions and we can no longer distribute the coupons with the original claim – potentially destabilizing our credibility as an Internet marketing company. If our clients spend $25, we will simply send an email to our account manager on Google to add a $100 credit to our clients’ account. And of course, we have to offer an explanation and apology to clients seeking these coupons!

We had a popular landing page for Google AdWords Coupons from our organic visitors, so we informed our visitors about the new change and hoped they didn’t blame us for pulling the rug out from under their expectations.

Done? Not really

Today I received another email from Google. It announces a new contest to all Google agencies likes ColdAd™ and with it, I also received a bunch of new Google AdWords coupons!!! If I bring more clients to Google AdWords, I might win the contest and some prizes.

So with that in mind, I’m passing on the info and (I guess), offering a friendly challenge. Go get Googled and AdWords will reward you and your efforts. We aren’t however, going to offer any more coupons because (again) there is no obvious benefit to us our clients at present.

So Googlers! Tell me what you think about all this? Do you think it’s still worth pursuing? And will they just change their conditions again?

Reference
Google AdWords Terms and Conditions. Retrieved from http://www.google.com/ads/