jkwilson78 - 5:24 pm on Aug 10, 2007 (gmt 0)

From Google:

Additionally, the top ad placement formula uses your CPC bid instead of your actual CPC to determine your ad's eligibility to appear in top spots. This means that your ad's eligibility to be promoted is no longer dependent on the bids of advertisers below you. Therefore, if you have a high quality ad, you now have more control to achieve a top position through your CPC bid. [adwords.google.com...]

Ok, they are now going to use the MAX CPC to help determine whether to bump an ad to the top.

This is how I am understanding the changes.

1. Quality score is still the major factor in determining if you get to the top. If your QS stinks it doesn't matter what your Max CPC. If your ad quality didn't make the cut you don't get "The Bump". 2. If your QS is good enough to be considered for top placement, they then look at your max cpc. 3. If your max cpc meets or exceeds the minimum CPC requirement to be at the top you will be bumped. Here's where is gets hazy for me. ? 4. After getting bumped to the top your actual CPC will not necessarily equal your Max CPC but will not necessaruly be what your previous CPC was. Rather your actual CPC will now most likely be at least the minimum CPC to be at the top but less than your Max CPC?

They say your Max CPC will be used so an ad is no longer dependedent on your competitors CPC's to get to the top.

BUT

After you get to the top is your actual CPC once again determined by other advertisers? Or will we now be charged a "Bump Tax" (the minimum CPC you must pay to be at the top if it is higher than your current CPC but probably less then your max CPC.)

Does this make sense? :-)

Regardless, it is a play to make Google more money and cost us more...to be at the top. Which as it's been pointed out is not necessarily the best spot for maximum ROI.