AdWords Algo Change

How will this effect us publishers?

[Edge]

Anybody following this thread [webmasterworld.com...] Alot of ruckus about the new minimum bid algo change. It appears that common keywords are cheap and complex specific keywords are expensive.

I',m try to digest all of the comments and understand the big picture for us publishers. Comments?

[m0nty]

Funny you should post that, I was in the middle of that thread myself. The obvious short term effect of the apparent rise in the floor of minimum CPC is an overall increase in prices, which is good for publishers (I'm seeing that myself).

However, the true effects will only be seen in the long term, especially in the context of the imminent competitive landscape (Yahoo, Ask Jeeves et al). At the moment the advertisers are running around like headless chickens, but soon they'll wise up and start working the system. I predict in the longer term, things will revert back to normal as advertisers find out new ways to decrease CPC.

[OptiRex]

Aha...we beat you to this several days ago wondering what was going on:

[webmasterworld.com...]

OptiRex

[ken_b]

I think it's still too early to really understand what the long term impact will be on publishers.

The last few days have been pretty good for me, with one small blip which I was able to manage via a couple quick url blocks.

But it's likely to take some advertizers a while to adjust their Adwords strategy to make the system work as well as possible for them.