And by $$ I mean more ability for profit and possibly cost as well. Announced August 8th Google will be making “an improvement to the top ad placement formula.” This change is supposed to bring “increasing control for advertisers.” However this means that they will swing focus on “actual” CPC to maximum CPC. In the past your CPC/actual CPC has been a large factor of what those BELOW you have been bidding. This new formula means that “your ad’s eligibility to be promoted is no longer dependent on the bids of advertisers below you” but more so on how high your Max CPC is. Don’t worry Quality Score is still a big key to your CPC and Position. Although we may see more CPC’s near our maximum bids instead of where they are now. For several of my clients our CPC is always about 1/2 of our Max bid, and we place in the top 3 every time. From my understanding this could mean that what you put down as your max will be what you pay, or closer to. We will have to wait and see how this really affects things. For some of my clients it could mean a lot of cash in increased CPC, the need to use position preference, and closer monitoring day in and day out. They say “We anticipate that most of your ads will continue to perform as they have in the past.” But only time will tell on this change. It could be really cool at the same time. It may mean that some of my clients competitors with a little bit better quality score that have a lower max CPC we can now beat out in position. And that could mean a lot more cash in profits in the end. Please comment on any changes that you notice in your own campaigns. More feedback from other AdWords advertisers on the results of this change could help us all.

Quotes from: Inside AdWords The official source for information about AdWords

Tags: Announcements, Internet Marketing, Pay Per Click Advertising //