One of my major terms is asking for a minimum 22p per click, i'm running position 1.8 out of a full set of advertisers and yet when i go below 22p it blocks it asking to increase quality.... i'm getting an excellent CTR so surely that's a quality ad!
I used to pay 17-18p per click and hang around position 4-5, now it's impossible for me to appear there unless i lower the quality of my ad...
i'm a merchant and it seems my jumps aren't so significant as others.. it's still forced our daily spend up 50%, if only there was some quality competition out there!
I've not tried MSN yet. Has anyone seen good results with them?
Over the long term this should produce more revenues to Google through high users satisfaction and a high click through rate, while in the other hand google can continue to milk those with irrelevant landing pages for money through an extremely high price per click, which should compensate for some of the lost ad revenue on the short term from the effective blockage of thousands of advertisers.
Since google is a business, any change in their algorithm is designed to boost revenues for the future, remembering this would explain a lot of google moves
They all look nice, but as a searcher, I am going to get darn frustrated to just have search engines or ebay and amazon to choose from. Plus those places spend soooo much time on crafting a quality ad, right?
If I were a merchant, I'd make sure all my shopping search engine ads were up to date. And we all know how affordable they are *rolls eyes*
As for the topic at hand, lately I have had some good success using Site Targettign rather then straight ahead cpc to bolster my campaigns and get an overall lower CPC. While search is by far the #1 way to acquire customers, when the prices start to rise, add some very carefully selected site targets, at very low CPM rates, and you might find, as I have, that it lowers the overall customer acquisition cost.
I believe this has to do with relevancy as G stated and not as much to do with increasing revenues, that as always with many G decisions is a byproduct and comes with the increase in relevancy which then increases clicks which in turn increases click happiness and blahblahblah.
As was pointed out earlier, G knows you cant afford the 5 or 10 buck clicks, it is a polite way of saying your landing page isnt what we want, please fix it so it doesnt say "Free vacation to Rome!" and then lead to a page about installing a toolbar for roman link spam.
I have a suspicion that this isn't all dependent on a single theory, but multiple ones, even though it would be much simpler to swallow.