in: [webmasterworld.com...]
AWA wrote:
It is still Max CPC x CTR. The difference is that now, the CTR of the ad copy itself is factored in, instead of it being solely the CTR of the keyword.
Would that be the CTR of the ad in combination with each specific keyword?
And how does this feature compare to "Automatically optimize ad serving for my ads" at campaign level?
Thanks in advance for explanations!
Lets assume you know the exact formula. How it will help you to get the higher rank? Only by writting better ad text! You can do this without knowing the formula.
You're missing my point. How do we know which Ad is better? We do track the Income and the Expense at the Ad level. Previously when the CTR used was the Average CTR for the keyword, then the CPC for the different ads were related to each other. For if one Ad's CTR is high, it makes the other Ads also cheaper. Thus a direct subtraction of the Income and Expense will not give the profitability of each ad. We used to factor the Average CTR and the Ad's CTR to come up with the profitability of the Ad.
Now if the CTR considered is that of the Keyword and the Ad, then the CPCs of the Ads are independent of each other and our calculations become much simpler.
This is critical in helping us determine which Ads are better. So I am not blaming Google for making the change but just want more information to operate better.
Lets assume you know the exact formula. How it will help you to get the higher rank? Only by writting better ad text! You can do this without knowing the formula.
if the formula involves the ad text, and you make a change to that text even if it's for the better, your cost could go up because now the ad text is defferent and it will be seen as a zero in the formula.
I don't need to know the formula, but knowing that the ad is involved will make me not want to change the text. It has cost my company too much money now.
Google gave no warning of this change. I've been told that we may have to stop using adwords. We wern't making a killing on it, but we weren't spending huge amounts like we are now either. Our accounting office told me to use google's search box and look up class action law suit. lol.
-Dr.X
[edited by: Brett_Tabke at 4:47 pm (utc) on April 28, 2005]
