Search engine optimization and pay-per-click advertising usually exist in two separate spheres, but it looks like the two worlds could be even more related that we had previously thought. A recent forum thread in Webmaster World asks an intriguing question: do AdWords prices go up each time Google pushes out an update to its search engine algorithm?
This almost makes sense, especially if your web properties were recently punished by Panda or some other Google algorithm update. Google could then artificially inflate the AdWords CPC pricing, since it knows that these publishers will be interested in regaining their traffic. Even if the inflation is real, thanks to an increased "flooding" of advertisers to AdWords, it means that the prices go up.
One forum user, "netmeg," brings up this exact point: "Changes in the algo could increase the number of advertisers because not everyone can afford to wait around to see if their SEO tinkering will bring the traffic back. In the short term, they may turn to AdWords."
Another theory is that Panda punishes the "lower end" publishers and pushes them off the AdSense map, thus reducing the overall inventory from which AdWords can pull. If the number of advertisers stay the same, then the bid prices naturally go up. Or it could all be in our heads.

An informal poll has been set up on Search Engine Roundtable, and it looks like 37.5% agree that AdWords prices go up after a Google algorithm update, whereas 22.5% say no. The rest don't know. What do you think?













































