I guess the question here is how much data does Adwords need to determine an ads performance? Sofar I've seen that Adwords raises the percentages in which it shows new ads although (in some cases) they have significantly lower CTR's.
The question is when does the optimization (which you would expect to favor higher CTR ads) kick in? (after X impressions and/or Y clicks and/or Z days)
I guess this is a question for the propellerheads that AWA talks to from time to time :-)
I'm going to have you ask, and then answer, your own question - and I won't even have to add a thing! ;)
You asked:
Does turning the auto-optimization ON and OFF reset the "knowledge" the system has gained for particular ads in an adgroup? Or will it retain the previous knowledge of older ads when the switch is flipped back on and then recalculate the optimization based on "old knowledge" plus recently gathered knowledge.
And the answer is:
(The system will) retain the previous knowledge of older ads when the switch is flipped back on and then recalculate the optimization based on "old knowledge" plus recently gathered knowledge.
Well said!
AWA