Uh yeah, so in the end, you really only can have as much data as a regular logfile can contain. It's more than people think, and storing it all is usually overkill. So, G/A is making two important decisions:
1. Precisely what to store (cookie info? User agent? etc.) and how long to store it.
2. How much to make easily accessible to the users.
If Google were to take the critical last step of allowing you complete API-like access to that log file data, you could write apps that could auto-optimize a PPC campaign. Just add your own personal alg's.
This sounds something like what Joe SEM is doing in the blog post Rose referred me to. And it's probably very possible, and there may even be bid management software that's doing this today--I really don't know (but I should).
So, why doesn't Google expose this data more easily to the average user? Two likely reasons. 1) a favor to 3rd party bid management software developers, or 2) they're holding back until they're ready to reveal part of a possible end game, which is auto-optimizing AdWords, where you just set the spending level and say "Go!" No keyword lists ever need to be figured out, maintained or optimized in this scenario. You just trust Google to auto-optimize your campaigns. It would required an analysis of click-thru and conversion of course. But I expect it's coming.
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