For example, me and another advertiser are both targeting the same keyword. Before the algo update I was no.1 with max cpc of 0.10. Then the minimum cpc for that advertiser is raised to 0.50, what will happen? He/she will be placed before me? If this is the case, it's obviously not fair for me because I have to pay more to get my position back. It's like I get punished for other people's mistakes. The result is Google will eventually drive the cpc up for all advertisers.
Or maybe the ranking factor remains the same even if the minimum cpc has been raised. I haven't done any experiment with it. Can anybody share some ideas on this?
It just cross my mind that if the minimum cpc is different for the same keyword for diffenrent advertisers, how google will rank the ads.
For example, me and another advertiser are both targeting the same keyword. Before the algo update I was no.1 with max cpc of 0.10. Then the minimum cpc for that advertiser is raised to 0.50, what will happen? He/she will be placed before me? If this is the case, it's obviously not fair for me because I have to pay more to get my position back. It's like I get punished for other people's mistakes. The result is Google will eventually drive the cpc up for all advertisers.Or maybe the ranking factor remains the same even if the minimum cpc has been raised. I haven't done any experiment with it. Can anybody share some ideas on this?
GAds, minimum CPC is related to whether a keyword will run or not (in other words, minimum CPC is a key component of a system that replaces the old system of disabling keywords, slowing accounts, and so forth). However one's minimum CPC is not related to ranking.
To summarize that briefly: minimum CPC determines whether an ad runs for a particular keyword or not, but does not influence position.
Under the new quality-based minimum bid system, ads are ranked in the very same way they have always been, and one's minimum CPC does not enter into the algo. Excerpting from the AdWords Help Center:
Keyword-targeted ads are ranked on search results and content pages based on their maximum cost-per-click (CPC) and Quality Score. (For the top positions above Google search results, we use the actual CPC.) The Quality Score is determined by the keyword's clickthrough rate (CTR), relevance of ad text, historical keyword performance, and other relevancy factors.Ad Rank = CPC X Quality Score
Quoted from:
How are ads ranked?
[adwords.google.com...]
I hope this helps to clarify.
AWA
But if GAds competitor's min is so much higher than GAds, it IS possible they will rank higher isnt it? Min cpc doesnt enter the algo but their actual cpc does, which will be heavily influenced by their min cpc.
With the result, as GAds suggests, of an accelerated upward trend in prices.
I dont see how min cpc and actual cpc can be seperated in terms of the ranking algo, one affects the other.
Iain.
But if GAds competitor's min is so much higher than GAds, it IS
possible they will rank higher isnt it? Min cpc doesnt enter the algo but
their actual cpc does, which will be heavily influenced by their min
cpc.
OK, I see now what you're getting at.
Position has never been dependent just on Max CPC, though - and one's
Quality Score is a big factor in determining position and actual CPC. What
actually happens in the 'auction' for position depends on the Max CPC and
Quality score of all the players.
Taking the example of an advertiser with a high minimum CPC: I think it is
safe to say that a keyword that has a particularly high minimum CPC also
will have a particularly low Quality Score, since there is a direct (and
inverse) relationship.
This can allow other advertisers with higher Quality Scores to show above
the advertisers with the low QS & high minimum CPC, while having a lower
Maximum CPC (and paying less) - in the same way that this has always been
the case.
AWA
But thats the point, the ranking algo hasnt really changed but the min cpc for many has changed. And this WILL affect rankings as people WILL be paying much more to get in to the top positions, followed by a knock-on effect on the "quality" advertisers who will have to increase their ppc, albeit to a much lower degree.
My worry is the big companies, deep deep pockets and potentially lazy advertisers, can buy their way to the top, as they always could. But it will be much more expensive for them now. And that WILL push up costs for those (little guys) who try and increase their quality & clickthrough, I'm sure.
The minimum cpc is like a starting point for a keyword. All advertisers start from the same place no matter what min cpcs they're paying.
In my example, if my min cpc is 0.05, my ranking score will be calculated from there and my competitor from 0.50. Right or wrong?
The minimum cpc is like a starting point for a keyword. All advertisers start from the same place no matter what min cpcs they're paying.In my example, if my min cpc is 0.05, my ranking score will be calculated from there and my competitor from 0.50. Right or wrong?
No, your ranking score will be calculated using your Maximum CPC, same as always.
Let me see if I can clarify.
The minimum bid for a keyword is simply the minimum amount that an advertiser must pay to have their ad show for the given keyword within the given account. It does not directly figure into the 'auction' for position.
The actual auction for position, however, works on the advertiser's chosen Maximum CPC bid - in the same way it has always done.
Remember, though: Max CPC is not the only factor for ranking - Quality Score is also very important. And a well targeted keyword (with a high quality score and thus a low minimum bid) can certainly appear above a poorly targeted keyword with a high minimum bid (which could also lead to a high Max CPC).
AWA
The minimum bid for a keyword is simply the minimum amount that an advertiser must pay to have their ad show for the given keyword within the given account.
If one is competing against others with the same display domain in their ad and they both have a max cpc at or above the minimum bid, then actually the ranking score determine not only position but whos ad (amoung those with the same display domain) gets shown right?
