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Clues About The AdWords Black Box

August 30th, 2007 by Carlos del Rio

Last week Google rolled out a new placement system for AdWords. After a conversation with a Google rep I was assured that the new system should result in a greater opportunity for advertisers to appear in the the position directly over the organic results, not first in the right hand column first above the organic results.

I am told that the system for determining actual cost per click has not changed. Even if you are promoted to the top of the left hand results, the rep says this is largely based on Quality Score, you will still receive reductions to your actual CPC based on your competition’s bids and your individual Quality Score. He did not know the answer to what the difference is between minimum bid and minimum top position bid.

The AdWords blog states that there is an additional minimum top position bid. So you are still going to be in the dark over what you are going to be charged for this top position. In competitive areas this new undisclosed minimum will likely never have an effect, on the other hand long tail phrases may see a rise in cost per click.

Another piece of information that may be important to decisions in the future is that Quality Score is affected by ad copy meaning that the display QS for each keyword is either an aggregate of scores for the ads in the ad group or only one of your keyword/ad copy combinations.

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