Paying Your Way To The Top – Google Adwords Change In PPC
August 12, 2007 by Pablo Palatnik
INSIDE ADWORDS ANNOUNCED LAST WEEK a change in formulating top ad spots in paid search. PAY YOUR WAY TO THE TOP. Of course Google doesn’t come out and say that but that seems to be the change. Quality score will still apply in terms of relevancy, etc.
“The key change to the formula will be how we consider price. Today’s formula considers an ad’s Quality Score and actual cost-per-click (CPC). The improved formula will still heavily weight Quality Score, but instead of actual CPC, it will consider an ad’s maximum CPC. Here’s why:
Actual CPC is determined, in part, by the bidding behavior of the advertisers below you. This means that your ad’s chance of being promoted to a top spot could be constrained by a factor you cannot influence. By considering your ad’s maximum CPC, a value you set, you will have more control over achieving top ad placement.â€
More control to the advertiser…that’s how it should always be. The changes should be implemented in the next coming weeks and you will see changes occurring to your ad positions if you are in the top spots for certain keywords.
“Your actual CPC will continue to be determined by the auction, but subject to a minimum price for top spots. The minimum price is based on the quality of your ad and is the minimum amount required for your ad to achieve top placement above Google search results. As always, the higher your ad’s quality, the less you will pay. And you will never be charged more than your maximum CPC bid.
How might this affect me?
We anticipate that most of your ads will continue to perform as they have in the past. In some cases, you may see that ads previously shown alongside search results are now shown in top spots, and vice versa. As a result, you may see a change in the average number of clicks and average CPCs for impacted ads.
Be sure to check your stats regularly and adapt your campaigns as you see fit. Here are some quick tips:
• If you don’t want ads that usually appear in high positions alongside search results to appear above search results, check that their maximum CPCs are not dramatically higher than the actual CPCs you normally pay.
• Continue to make routine quality optimizations to keep your costs down and your performance high.â€
