Adwords Tries To Drive Up Keyword Bids

August 31st, 2008 § Leave a Comment

In the most recent Agency Update, Adwords released a couple of interesting updates:

Whereas before you bid to get your Ad shown and watched the resulting average position, you’ll now bid to get your Ad shown on the first page. Keywords that might have fallen foul of the Quality Score and become inactive will now show regardless, only they won’t make the first page of results.

This shake-up in the bidding system makes it easier for crappy adverts to show, but what I’m most concerned with is the fact that Google are making the first page a goal. Everyone wants to be on the first page, but before the bidding system meant that we had to work to get there. Under these changes advertisers will know from the start what they have to bid to get the best spots and I’d be willing to wager this will drive bids up.

I wonder just how Google will calculate the minimum bid – will it change every day? Will Quality Score still have something to do with it or will it simply become a matter of the ten richest companies snapping up the places?

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