Internet Marketing Monitor
February 15, 2007
Filed Under (Advertising, Google) by Derick on 02-15-2007

In what some might say is a reversal of roles, Google now appears to be following Yahoo's lead with the announcement that it is not only changing the Quality Score algorithm used to determine minimum bids for keywords in it's advertising system, but also is making those Quality Scores visible to advertisers.   Google used to keep those scores to itself.  But when Yahoo rolled out its quality scoring system last week it made the scores visible and it would seem that Google has now decided that Yahoo had a good idea.

The algorithm changes are being made to help Google better set minimum bids on keywords for which it has limited data.  According to the announcement, minimum bids for keywords with little or no performance data associated with them will start lower… until Google has had been able to collect more information on their performance.  Google says the change in algorithm will have definite effects on advertiser's keywords:

As a result of this update, you may notice that the minimum bids increase for some of your keywords and decrease for others. To better understand the impact of this change, we suggest that you implement the Quality Score column. This will allow you to better monitor whether your minimum bids increase or decrease based on our changes.

Andy Beal spoke with Nick Fox, Google's Senior Business Product Manager for Ad Quality, and he said the company is expecting complaints on the new algorithm.  Fox told Beal that the change will effect a "fairly large" group of keywords.  But he also said that the majority of the keywords effected will be keywords that aren't big traffic drivers and the post on the Inside AdWords blog offers these suggestions:

If you find that the minimum bids for any of your keywords increase, making your keyword inactive for search, please consider optimizing your campaign instead of raising your maximum CPC to the minimum bid. We recommend changes such as choosing a keyword that is more specific to the product or service that you offer or editing your ad text to make it more relevant to the keyword before you simply raise your minimum bid. By improving your quality we hope to provide the highest quality ads to our users while also providing you with the highest quality leads to maintain great ROI.

I guess any change that's meant to make things more representative is ultimately a good thing.  Just remember that when you're starting to fume over the changes to your bid amounts in AdWords.  It's all to make the system more accurate.  Say it again.  It's all to make the system more accurate.

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Comments:
1 Comment posted on "Google Gets Ready For Backlash Over New AdWords Quality Score Algorithm"

[…] If Google didn't think there was any value to Quigo's offering, would it really be investing the time and money into implementing Quigo-style features in it's AdWords system?  No.  Companies don't waste money… even companies with the resources Google commands.  The search giant recently started allowing advertisers to see the once-secret Quality Scores for their ads as well.  Transparency seems to be a growing trend behind the doors of Googleplex. […]


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