What does it all mean?! [Archive] - Search Engine Roundtable Forums

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dazb2004
08-09-2007, 11:04 AM
This message popped up in our client centre today talking about a change to the way google ranks ads... read the full explaination here (https://adwords.google.co.uk/support/bin/answer.py?answer=72795&hl=en_GB)

Its got to be said... I'm not entirely sure what they are saying.

From what I can make out, the cost for the top positions (i.e. ones that appear above natural listings) is determined in part, by the amount of ads below yours and how much each of those it paying for their position.

The new change seems to assign a minimum fee for a top spot. It also says that your actual CPC will still be determined by the auction but it also says this fee will also be mainly affected by the ads quality score.

Are we to expect CPCs to go up if we want to hold top positions? Are we expecting there to be more of a fight to hold the top positions?

:confused:

Ryan L
09-05-2007, 02:45 PM
My understanding is it used to be:

actual cost per click + CTR/Quality Score...yada yada = Placement

now

maximum bid cost per click + CTR/Quality Score...yada yada = Placement

bottom line is yes I have had to bid more and pay more for the same placement.

dazb2004
09-06-2007, 12:18 PM
hmm, should have guessed really.

Its not as if they would make changes that would lower their monthly income...

Lets hope the cost increase isnt too painful!

Ryan L
09-06-2007, 01:05 PM
The move should provide some pretty healthy growth to the bottom line.

problem is how much growth is already factored in when your stock price is
$523 smackers. I would guess quite a bit?