Aug 24, 2007 113 reads by Navneet Kaushal

Some two weeks back, it was announced by the Inside AdWords team that there will be some improvements in the formula used to determine which ads are placed in the top spots above Google search results. Well, the improved version of ‘top spot’ ad placement formula is now live. Inside AdWords are confident that the change will give advertisers “more control” over when their ads achieve top spot. This improvement will also increase the quality of ad results for users.

The key change made to the formula will now consider an ad's maximum CPC. Earlier, the formula for top placement used to take into consideration an ad's actual CPC. The new change is good, but on the other hand it also highlights the fact that earlier top spot advertisers might have unknowingly by-passed recent enhancements to the Quality Score factors. In short, it simply reveals a flaw in the previous formula.

Inside AdWords team explains,

“Since actual CPC is determined, in part, by the bidding behavior of the advertisers below you, your ad’s chance of being promoted to a top spot could have been constrained by a factor you couldn't influence.”

It has been noticed by different firms from time to time that even lower quality ads are placed in AdWords top spots. This can be due to proper keyword placement or landing page relevance. Advertisers who have earlier enjoyed top spot placement but have not concerned themselves with the Quality Score may face some problem, with the latest change, to be there at the top spot. The AdWords team explained that advertisers with ads in or near a top spot may notice a change in the average number of clicks these ads receive, and also in their respective CPCs. The reason for this change is:

“The degree to which your clicks and CPCs may be impacted will depend on a number of factors… you may want to monitor your account as-is for the next few days or weeks to see how much of a true impact the improved formula will have.”

In short, the new formula used for ranking ads alongside Google search results, will weight Quality Score along with maximum CPC. Now, the quality of any ad will be the leading factor throughout the system. Even though there will be a minimum price to achieve top placement, your actual CPC in these positions have to fall in line with the latest improvements that you make to improve the quality of your ad.

To read more on this issue, click here.

Navneet Kaushal

Navneet Kaushal

Navneet Kaushal is the founder and CEO of PageTraffic, an SEO Agency in India with offices in Chicago, Mumbai and London. A leading search strategist, Navneet helps clients maintain an edge in search engines and the online media. Navneet's expertise has established PageTraffic as one of the most awarded and successful search marketing agencies.
Navneet Kaushal
Navneet Kaushal
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