Professional Search Engine Optimization and SEO Marketing Firm

Home

Package Deals

Optimization

Submission

Pay-Per-Click

Paid Inclusion

Conversion

Free Tools

Blog

Welcome to the ineedhits Search Engine Marketing blog, where we share the latest search engine and online marketing news, releases, industry trends and great DIY tips and advice.

We encourage you to get involved in our blog community - so share your opinions and experiences by leaving comments on our posts.

If you're looking for help with promoting your website - check out our range of affordable search engine marketing services.

Tuesday, August 14

Google AdWords Algorithm Update

Do you run an AdWords campaign and want to see your business in that top ad position? Now it may be within your reach. In the upcoming weeks, Google will be tweaking their AdWords ranking algorithm which is used to determine which ads are displayed in the top spot, above organic search results.

The updated algorithm will continue to use the Google quality score and cost per click (CPC) elements in the formula, with a small change for the first ad position. Instead of using the advertisers actual cost per click, it will factor in the maximum CPC bid for each advertiser. This will allow advertisers to have more control over their ads showing in the top position.

From the Google AdWords blog:

"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."

Let's look at a quick example. Say I have an ad with a maximum CPC of $0.25, but there are no competitors for my keywords; then I'm only paying the default cost of $0.05 per click. If any new advertisers enter the market for this keyword, I will be credited for my maximum CPC bid of $0.25, giving me greater control over retaining that top spot.

Some bloggers have raised concerns over the new formula, saying it will allow the system to be abused by advertisers willing to pay more and is just a move to increase Google profits. It should be noted that Google still use quality score as the greatest determining factor in top ad placement, making it unlikely for junk advertisers to buy their way to the top. But as far as increasing Google's profits go - it's likely that some advertisers will see an increase in the price of their keywords. As always, let us know what you think via our blog comments!

3 Comments

At 1:55 AM, MythMan J said...: So, AdWords ads are a 5-cent-CPC no matter what, and bidding for top ads is just thinking of a bigger number?

That would make all the "GOOGLE ADS FOR FREE"-links I've been seeing (but not touching) make sense ... if you THINK an ad-click's worth 10 cents, and you get it for 5, then it's LIKE "free."
At 2:00 PM, Anonymous said...: I don't think the default CPC is 0.05$ because I came to know that many clicks simply yield a measly 0.01$ in the adsense earning.
http://www.dairyforall.com
At 1:36 AM, Matthew Elshaw said...: The cost-per-click (CPC) of AdWords listings depends on the competition for your chosen keyword(s). If you're bidding on popular keywords, your likley to be paying a lot more than $0.05. In my example, the advertiser would only be paying around $0.05 as there was no competition for his keywords.

Our Newsletter

Subscribe!

Atom Site Feed

Free Tools

www.gooruze.com

Recent Posts:

Search Engine Marketing Blog Homepage

Contributors

Warren Duff
Rene LeMerle
Jackie Shervington


	Recommended

7 Day Google Inclusion
Get listed in Google in 7 days - guaranteed! Only $24.99/mth

Buy Now

More ...

Guaranteed Top 10 Listing
Guaranteed top 10 listing in 250+ search engines - Just $9.99/month

Buy Now

More ...

Google & Yahoo! Advertising
Instant exposure and quality website traffic from Google & Yahoo! sponsored advertising. Increase your traffic from only $99 per month.

Buy Now

More ...

Archives:

May 2005 June 2005 July 2005 August 2005 September 2005 October 2005 November 2005 December 2005 January 2006 February 2006 March 2006 April 2006 May 2006 June 2006 July 2006 August 2006 September 2006 October 2006 November 2006 December 2006 January 2007 February 2007 March 2007 April 2007 May 2007 June 2007 July 2007 August 2007 September 2007 October 2007 November 2007 December 2007 January 2008 February 2008 March 2008 April 2008 May 2008 June 2008 July 2008


ineedhits, ineedhits.com, and their designs, logos, and related marks are trademarks of Ineedhits.com Pty Ltd. © Copyright 1999 - 2008 ineedhits.com

Google AdWords Algorithm Update

Post a Comment