A Ray of AdWords Hope? New Formula to Calculate Ad Placement
This could be really good news for those of us who feel like we are stuck on Google’s bad side when it comes to AdWords ad placement.
The Inside AdWords blog has announced that, in the next few weeks, they will be rolling out a new top ad placement formula which should help more advertisers qualify for placement on the AdWords ads that show across the top of the search results page.
According to Inside AdWords, the key change of the formula is that it will use maximum cost-per-click (CPC) along with Quality Score rather than actual CPC along with quality score to determine top ad placement. The logic behind the change is explained as such:
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.
The blog also goes on to say:
In addition to increasing control for advertisers, the improved formula increases the quality of our top ads for users. This is due to more high quality ads becoming eligible for top placement, thereby allowing our system to choose from a larger pool of high quality ads to show our users.
Being as we tend to have a tough time being a part of the current group of eligible “high quality ads” on AdWords, I’m hoping this change gives us a chance to rank better in the paid results.
Barry Schwartz does a really nice breakdown of the changes over at Search Engine Land. He got some more detailed information from his contacts at Google. One, quote from his rundown that is a little disheartening is:
Nick Fox told me that there will be a "relatively limited" number of advertisers impacted by this change.
Lame Nick...so lame.
One thing I need to admit though – I had no idea that Google was using our actual CPC to place our ads. I always figured it was the maximum CPC that they used for ranking purposes. Am I the only one who thought maximum CPC was what was used?
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Comments
"relatively limited" number of advertisers impacted by this change.
I've heard that one before :)
Let's hope it's for the best.
Posted by: Anonymous | August 17, 2007 03:03 AM
No, you are not the only one that thought maximum CPC, was being used.
Since maximum CPC affects how much actual CPC is.
Posted by: Anonymous | August 17, 2007 03:04 AM
Google does things for 2 reasons.
1) So they make more money.
2) OR They think they will make more money.
Increasing control to advertisers is just a way they can make the change look pretty.
Posted by: Anonymous | August 17, 2007 03:18 AM