Google Raising AdWords Prices for Less Relevant Ads

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Google Raising AdWords Prices for Less Relevant Ads

In another way to reap the online advertisers of more dollars and keep escalating click prices beyond initial Google estimates and realistic metrics (please do not tell me I’m the only one who’s noticed a huge discrepancy between Google campaign impression and mass click estimates and reality and how Yahoo estimates are usually tight enough to set your watch to), Google has announced that they will now also be raising the price of “less relevant AdWords ads.” MarketingVOX reports on the Google AdWords change.

From MarketingVOX :

Google announced that it will start charging higher minimum bids for keywords for those advertisers whose placements prove less relevant to readers. A “Quality Score” will be associated with each ad, determined chiefly by performance, and the resulting minimum bid for a keyword may change over time. This means that different advertisers will have to pay a different amount at the low end of the keyword bid scale. This will allow Google to reap more ad revenue from advertisers it previously shunted aside in an effort to increase the general relevance of its ad panels.

The immediate practical result for existing Google advertisers is that keywords that were previously put “on hold” by Google may suddenly awaken, so long as their maximum bids exceed the new minimum bid set by Google based on the ads’ Quality Scores.

Hmm… how will this effect the eBay or Target filler ads which are shown for almost any search on Google? You know the ones, like this:

Poo Poo
Buy Poo poo online.
Shop Target.com
www.Target.com

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Loren Baker
Loren Baker is the Founder of SEJ, an Advisor at Alpha Brand Media and runs Foundation Digital, a digital marketing strategy & development agency.
Loren Baker
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