Google to Change Keyword Status Algo

Breaking Keywords News

[Tiber]

I just got this notice at the top of my AdWords account. Thought I'd post it so others can see it.

Coming soon: Simplified keyword states and quality-based minimum bids.
In the coming weeks, your keywords will no longer be evaluated as normal, in trial, on hold, or disabled. Instead, your keywords will either be active or inactive, depending on their quality and maximum CPC. Each keyword will be assigned a minimum bid based on its quality. As long as its maximum CPC meets this quality-based minimum bid, your keyword will remain active and trigger ads. Learn more.

[edited by: eWhisper at 12:00 am (utc) on July 15, 2005]
[edit reason] Please don't copy entire pages. See TOS. [/edit]

[dave741]

"predicted CTR" is already being used.

Suzyvirtual, how much sure ar you about this?

[suzyvirtual]

like, 100%. It is possible that the prediction measures are changing to some degree with the new quality score. But, the adwords position algorithm has been way more complicated than just CTR history & bid price for quite a while (several months at least).

[Paul_N]

From my understanding, predicted CTR, or 'Quality Score' is only temporary to give ads a fair trial without wasting too much of Google's ad space.

Once actual CTR is measurable, why would Google want to reference a predicted CTR when it's always going to be less accurate?

[SlimKim]

Will the minimum bid be lowered to one cent or will the current five cent minimum still be in place with provisions for lesser actual billing?

Thanks :)

[inasisi]

Paul_N, I agree with you. Once there is a history for the actual CTR, why should Google still use the predicted CTR?

Also why is Google keeping the date of the change a secret? It would be a lot easier for us to plan if we knew of the date. There have been bigger and more complex products for which companies have announced release schedules well in advance, why not for this? (It is another matter that MS keeps postponing the launch date for Loghorn but then it has the advantage of being a monopoly). Google has definitely improved in its communications but it still has a long way to go.

[jim2003]

I am not sure that "predicted CTR" would always be less accurate than historical CTR. For instance if I am getting a 10% CTR on a keyword for which I have the only ad showing, and I continue to have the only ad showing, my predicted CTR should also be 15%.

But if all of a sudden 2 competitors begin bidding on that keyword, it is fairly logical that the CTR for the keyword would be reduced somewhat.

It does not seem fair to the new bidder to handicap their bid positions by assuming that I will continue to recieve a 15% CTR on my ad. I am sure Google has enough historical data to make a statistical calculation of what my "predicted CTR" will be in the new three ad environment.

I am sure that there are other factors that will allow Google to calculate a statistically accurate predicted CTR, that is superior to a plain historical CTR.