Barry Schwartz reports thatin the upcoming weeks, Google will be releasing an updated algorithm to determine the ads that are displayed in the top ad spot, above the organic search results. The updated algorithm will continue to use the quality and cost-per-click (CPC) figure but will be slightly tweaked for that top ad location. Now, instead of using the actual CPC, Google will use the advertiser’s maximum CPC, in the overall equation. In addition, Google will be applying a stricter threshold on the quality component for the top ad positions.
4 Comments
4 Comments
Comments
This algo change was lonnnnnnng overdue.
sorry, but no! This is not an algo change and it was not overdue. It’s a matter of Google changing their method for determining the top ad-spot based on highest bidder. If you’re an over-bidder, you’ll now be rewarded for doing so.
The obvious effect of this change is that those who can afford to take the most risk can take over the top positions. It would be extremely unwise for niche marketers to risk max CPCs in excess of their profits because competitors can pull the top bids using Ad Word Analyzer or Keywords Analyzer and bid a penny under them, forcing them to pay up. Advertisers who can afford to cover such losses will be able to outbid niche advertisers at will.
I agree with the other comments here!