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August 12, 2007

Upcoming Adwords change to the top ad placement formula

Filed under: AdWords — Kyle M Brown @ 4:45 pm

Upcoming Adwords change to the top ad placement formula. Over the next two weeks Google will be changing the Adwords placement formula.
Read more on Adwords changes to the top ad placement formula
Google Adwords advertisers ad placement will no longer be determined by the average CPC advertisers are willing pay plus the quality score. The placement will be determined by the Maximum CPC advertisers are willing to pay plus the quality score.

What I see as a pro is that it will be easier to land in the top postition be simply increasing the your maximum CPC until you land the position.

What I see as a con is that competition for the top position could heat up quickly, increasing maximum cost per click for all advertisers.

A side note: I suppose increasing the Quality Score by optimizing your campaign could also improve your position but which holds the most weight Quality Score or maximum CPC?

Read the FAQ on the new Google placement formula here

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