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This does not hold true just for ad text, it also is true when you change destination URL's.
I am sure some of you knew that, but how many of you knew every time you reset your ad text it lowers your QS and you will in turn pay more in the auction?
Such as, older ads get more weight, but I'm not sure it does. I don't know
So initially you are saying 300m, and thanks for the heads up, that a new ad with a lower quality score will end up costing more for awhile until the system catches up (assuming the ad performs well).
Lucid, I think thats solid advice and I wish i had done that, but I did not think it would make that much of a difference for some people out there.
Netmeg I also agree that rotating ads is a good thing and I do that too, but my concern has less to do with writing a good ad (I write good ads too :P)and more to do with Google not doing a good enough job to inform people that if they make changes to ad text it might also affect their bids.
I know most here have the opinion that Google is OK, and I have the same opinion, but issues like this cut in to my ad spend and I suspect most do not really see it as a big deal because they are content spending what they do and thats fine, but when I spend well over 100k a month those pennies add up to thousands of dollars and it stands out a lot to me.
The whole idea of PPC ads is to keep them fresh and up to date so that your visitors have the latest information to make their decisions about your service or products.
IMHO I doubt age of an ad will ever be a factor in the PPC game.
Another question is how long does it take for that change to get back to its normal ctr. Is it 5 clicks or 100 clicks or a day or a month.
ogletree: I have a team of Google reps, they told me it resets to zero. meaning I am pretty sure the default is 0%.
When you update an ad, the QS for the new kw/ad pairs is calculated in the same way as if you created a brand new ad. This initial calculation factors in the past performance of a variety of indicators from not only your account but other advertisers as well.
You can use this to your advantage. If you have an ad that is performing poorly (e.g., low CTR causes min bid to jump to $5), you can sometimes get back to a reasonable min bid by creating a new ad -- and that's because the base QS is recalculated based on past performance from your account and other accounts. I've had many instances where my costs were lowered by the use of a new ad.
And of course you have also found out that you can sometimes lose the benefit of a well-performing ad if you make any updates. But that really should not last all that long. For a little while it may have a lower position (or a higher cost for the same position), but if it really does perform as well as the previous ad then it should be able to get back to the same QS level or get even better.
Google not doing a good enough job to inform people that if they make changes to ad text it might also affect their bids.
We are talking pennies here.
Hopefully I'm not belaboring the obvious. Google's intent is to make money. And "pennies" is how money in billions is made. Like Carbon Tax and Trade Google has developed a way to create something from nothing for the sole purpose of income. If one forgets that one will "invest" more than they wished and will earn less than they might have. As the Google offering stands SOME money is made, both with advertisers and publishers...with Google making the lion's share.
The inequities in the platform are one reason why I've opted for direct advertising and haven't looked back...though I keep looking at the Google offering to see if, perhaps, real profits might be made, rather than "validating" their bogus Quality Score, Auctions, and other platforms made from nothing and non-transparent payment schemes.
Money can be made on line, of course, which is why Internet adverts continue to work; yet, Google has bamboozled millions (a conservative number) of players at the moment. I personally am not convinced. Direct sales (for my commercial sites) works via Google AND BING Serps (users looking for product) better than if I played with Adsense or Adwords. This is a Personal Opinion, and please ignore!
The same applies to the size of the account a person manages. If they manage an account that has a high amount of ad spend thos pennies will ad up much faster. I just dont have those kind of pennies to waste. I also happen to agree with you, it not the only factor, but any factor that affects the amount of ad spend is of great concern to me.