In January, Google released a new set of PPC management Automation Tools in Adwords to relatively small fanfare. After testing the Google tools with our own internal search engine marketing and pay per click management team, we found that some aspects are pretty cool. However, these tools did not change our process significantly.

There are SO many pay-per-click management tools out there, and most of them make extremely vague promises (Guaranteed to Improve Online Metrics! Get Better Results!).

After reading much about these other tools, we have some thoughts on the validity of some pay-per-click automation systems. Based on our observations, we determined that working with a PPC consulting company is still a better option, but here are some of the pro’s and con’s of working with some of the tools readily available:

Pro: Support during Busy Times/ Process Efficiency

We’ll start on a positive note. One of the best things about the new Google toolset is it can provide back-up when you need it. I can’t speak for all pay-per-click managers, but I am often working on several projects and other things that require immediate attention. One of the best features is the changes to budget during key advertising times. Sometimes those budgets can go a little crazy when you are not paying attention!

It helped because after you are done fixing immediate fires, you can check on your campaigns and be assured that you did not spend $8,000 over budget.

Con: Most Tools are not Automated

When we tested our own campaigns with the Google Adwords Automation tools, we found that there was still a lot of manual input required. Budgets, goals and other factors still required our consideration and ongoing change. What we found with many of the tools available, is that they make suggestions based on your behavior and performance, but still require a consultant to ‘click go.’

Other PPC management companies and SEO gurus out there have encountered the same thing. James Zolman of SEM Environment talks about how automation is a misnomer with many of the tools out there, "A company that claims automation, while putting all of the control into a professional paid search manager’s hands, can’t really be considered automated at all!"

According to Zol, many of the tools he tested are semi-automated, plagued with bugs and required manual supervision to fix issues.

Pro: Statistical Adjustments & Sheer Volume

Zolman also made a very important point that we agree with. Pay-Per-Click accounts, large or small, are incredibly complex entities. They are subject to extremely complicated algorithms, market conditions and statistical analysis skills that some marketers just don’t have. This doesn’t mean that marketers cannot understand or analyze properly, but that they cannot conduct the analysis as often or quickly as needed.

Here is the example that Zolman outlined, "Can said paid search manager rapidly compare and model today’s results from yesterday’s results, same date/last year’s results, same date/last month’s results, and other date OR day specific results relevant to that day’s bids and adjust bid rules accordingly – even through sales, vacations, 24/7?"

Truthfully, I did not want to agree with the scenario he outlined. However, in most technology companies that scale of analysis is difficult to accomplish.

Con: Gut Checks & Market Cycles

This point comes down to the human element. Technology is pretty sophisticated and in theory should behave much like the first law of motion. Without outside interference, objects in motion stay in motion (Thank you About.com for reminding me of the wording). However, we humans are fickle, interfering beings. This is why a fully-automated system is far off.

Because we change our minds (change in market demand), have holidays (increase or decrease demand) or sometimes act in irrational ways (confusing use of search terms), pay-per-click management often needs a human to understand the outside forces at play.

I make humans sound silly, but there really is intangible gut-check sophistication to the things we do. We get a good or bad feeling about something (even against all information available), and we are right. This is not something that automated systems can address.

Additionally, one of the best parts of working with a pay-per-click consultant is they can take the incredible amounts of data and make it meaningful. Some automated systems can report in very sophisticated ways, but lack the ability to explain it meaningfully.

Con: The Truly Automated Ones Require >$100,000k in Ad Spend

Okay, so thus far we haven’t really admitted that there are some truly automated systems available. There are some, but they are primarily focused on clients who have $100,000 or more in ad spend per month. This may be a generalization, but I don’t think most companies have that much dedicated purely to pay-per-click advertising. These tools, while incredibly cool are very cost prohibitive.

In our assessment, the cons of automated PPC management tools outweigh the pros. That may sound like a biased opinion coming from a PPC consulting company, but at the heart of what we do is efficiency. If many of these tools improve on their promises, they may be worth considering. In the meantime, please ask us questions in the comment section or let us know how we can assist your search marketing needs.