[ChuckMcM]

"Do you have evidence to support the assertion that it isn't purely percentage based?"

No. I reasoned to it by flipping it over. If the banning is purely percentage based then a viable business would be to create an entity that laundered AdWords spend. This is how it would work.

Let's call our company "Ads-r-us" and it contracts with Knife Depot and 1-800 Flowers. It charges Knife Depot a 'premium' to get its 'ban-inducing ads' and it charges 1-800-Flowers a discount because its ads are "clean." It structures the premium and the discount such that there is a bit of cream in the middle for it to keep. Then our entity goes off and buys Ad insertions at various bid points. Knife Depot can advertise forever since there is no risk of them being banned because Ads-R-Us is keeping the percentages in check.

I looked around for these guys, I don't see them. (And as a web search engine they aren't talking to me either). So either they don't exist (which I reason is unlikely given how much thought people put into 'scamming' the advertising business on internet ads) or such a scheme wouldn't work. And if it really is strictly percentage based it would work.

From that my thinking was that it might not be purely percentage based. No one is picking up the Canadian Pharma ads, and they have a LOT of money to throw around.

[jordoh]

There could be such a service flying under the radar, but third-party AdWords resellers are required by the TOS to only use one account per client.