New quality score lowers potential of QS and raises cpc?

Just my observations since monday morning

[Soze]

On monday morning I saw a huge jump in cpc in my adgroup that has a %50 ctr and hundreds of thousands of clicks. My cpc went from .03 to .30. My thoughts on this, are that the QS update has reduced the potential of of the QS. Because your costs are based on the bid of the ad below you, divided by your QS, simply lowering how good your quality score can be will simply increase costs.

If everyones quality score goes down proportionally, it won't effect the rank of ads, just the cpc. Easy way to increase costs while maintaining all the ranks.

What do you think about this? Likely? Anyone else see higher costs starting monday morning?

[edited by: Soze at 1:50 pm (utc) on Feb. 20, 2007]

[momotan]

The new QS algo hasn't been launched yet.

[Soze]

Yes it has. Support just told me it was launched already. They issued that update on their blog last week, saying next week. Monday was the start of 'next week.'

[momotan]

My rep team says it has not been launched. Judging from the non reaction on the boards here, I would have to agree. When this thing is launched, mayhem will ensue as usual as hundreds of people will flood the board complaining about their advertising.

[Soze]

So just the QS column is added?

[AdWordsAdvisor]

The new QS algo hasn't been launched yet.

I'll confirm that.

Yes it has. Support just told me it was launched already.

It is not correct that the QS update has launched. However it is correct the Quality Column has launched. This may be what support meant - but in any case, I'm sorry for any confusion.

AWA

[Soze]

Thanks for clarifying. Now to investigate this rise in cost furthur.