Confirming reports continue to trickle in that a major part of Google's advertising ecosystem is failing, at least for some advertisers. The broken bit: the data linkage for those advertisers that create a feedback loop from their analytics data back into Google Adwords, allowing Adwords to optimize bids based on conversion performance. Reportedly, campaigns that have bid prices set based on conversion data are finding that the lack of conversion information is causing havoc with bids.
Forum participants at WebmasterWorld indicate that conversations with Google reps indicate the search giant knows of the problem, but has not yet developed a fix.
It remains unknown how many accounts are affected, but at least one search marketing firm indicates that all of its accounts have suffered the loss. Because Google's cost-per-conversion system requires decent conversion performance for a campaign to be successful in the media auctions, the affected accounts have seen their daily spend throttle back to very low spend levels.
Search engine marketers expressed concern on the forum that by the time the issue is fixed, Google will have a few weeks of incorrect conversion data, which might affect their campaigns with either continued poor spending levels or an over-correction that causes a great deal of mistargeted, expensive bidding.