AdWords Ad Placement Change Coming

adwords ad placementGoogle recently announced that they are changing the ad placement formula for the top positions above the natural search results.

Google’s explanation


The old formula considered your quality score and your actual CPC, which was determined by the advertisers below you. The new formula will consider your quality score and your max CPC bid.

More money, better placement. This will become a huge advantage for the larger companies with healthy budgets.

So, now the really interesting thing to watch is how much will the average CPC increase on current top placing ads?

My fav line from the detailed explanation:

“If you don’t want ads that usually appear in high positions alongside search results to appear above search results, check that their maximum CPCs are not dramatically higher than the actual CPCs you normally pay.“

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