Google Grants Change: Actually cuts Grants in Half

Google Grants Change: Actually cuts Grants in Half

By: Daniel Jeffers - Search Engine Optimization - 2014

Bid Cap Raised to $2.00

As of yesterday, (the 28th of January), the bid cap on keywords for users of the Google Grants program was raised from $1.00 to $2.00. This sounds like a good thing. No doubt many Google Grant users have long wished they could raise their bids just a little to get traffic from those tantalizing, just out of reach words. For those who don't spend much time doing online marketing for non-profits, Google Grants is a program that gives approved non-profits $10,000/month to spend on AdWords. It is a great program, and certainly speaks well of Google's non-evil side. But.

Why Doubling the Cap is Actually Halving the Funds

Many non-profits are competing with each other for the same keywords, and most are working with that same pool of "money." Let's say I give 10 people $100 in fake dollars that can only be used for purchasing limited-edition commemorative plates. Each time a set of plates come out, they bid against each other for the ones they want. At first, we limit the top bid to $10. Each person is going to get at least 10 plates, probably more because not all plates will go to the top bid. Then we raise that top bid to $20. What happens is that the minimum number of plates each person will get drops to 5. They'll probably get a few more than that, but not near as many plates as when the maximum bid price was lower. A similar thing will happen to web traffic. There are other factors, of course. Many non-profits are also competing with other entities that are outside the Google Grants program. At first it may seem that they can now bid for traffic that they were previously missing. But the truth is that, as bid prices go up, they are still limited by that $10,000/month upper limit. Unless that changes as well, this is really a negative change for most program users. The notification did indicate that the change was the first of TWO changes to the program. Let's hope the second change raises that monthly grant.