Google Adwords Algorithm Changing

Many companies rely on Google Adwords to drive users to their web sites.  Google Adwords is a pay-per-click program where companies bid to ensure top placement in the search engines for designated keywords.  In the coming days, Google will be unveiling its new ranking system, which is aimed to improve the quality of its results.

Quality Score
One of the most important changes is the adjustment to the Quality Score algorithm.  These scores will now calculated in realtime as a search is performed.  Google also noted it will be analyzing landing page quality less frequently in this model.

Inactive for Search
Google is doing away with the 'inactive for search' terms, which appeared for Google Adword account owners who targeted keywords with very low overall impressions.  These type of keywords will now be available.

First Page Bid Estimates
The change that will have the most impact to the bottom line of each Google Adwords account owner is the First Page Bid Estimates.  These will replace the minimum bids.  It is hard to gauge how this will affect overall bids, since the new systems is still in the process of being rolled out, but there may be significant impact to advertisers targeting popular keywords.  According to Google, keywords with fewer advertiser's bidding, will likley be very close to the previous minimum bid amount.

The changes discussed should be making their way to Google Adword accounts this week.

For details directly from Google, visit http://adwords.google.com/support/bin/answer.py?answer=107484&hl=en_US

Posted September 22, 2008 | Read all posts by Ryan Deyer