Google Tweaks Adwords For More Revenue
I like reading Techcrunch articles because they seem to be on the pulse. I read one today that Google is tweaking their Adword system to recognize quality more.
Google Tweaks AdWords To Reward “Quality” (And Juice Revenues)
In it they talk about the Adwords Blog:
To appear above the search results, ads must meet a certain quality threshold. In the past, if the ad with the highest Adrank did not meet the quality threshold, we may not have shown any ads above the search results. With this update, we’ll allow an ad that meets the quality threshold to appear above the search results even if it has to jump over other ads to do so. For instance, suppose the ad in position 1 on the right side of the page doesn’t have a high enough Quality Score to appear above the search results, but the ad in position 2 does. It’s now possible for the number 2 ad to jump over the number 1 ad and appear above the search results. This change ensures that quality plays an even more important role in determining the ads that show in those prominent positions.
What I see here is that Google is making it easier for Ads that “meet” the quality score to be displayed in the top section of their web site above the organic search results. In the past, it used to be a combination of quality and bidding. If the bid was high enough it would make it. Sometimes no ads would show on the top, all the way up to 3.
As most marketers know, the most clicks happen on the top results, with less on the side. So by allowing more ads to be placed on the top, more clicks will happen resulting in more revenue for Google.
While increasing quality content is always a good thing, ads are not really considered content per say. Because the move increase revenue to Google, its good intention seems to be diluted by the revenue grab.
Ultimately the market will decide. PPC advertising is extremely competitive, with advertisers struggling to find the fine line between winning and losing. This will make it even harder.
In the past model, advertisers that had good quality ads but didn’t want the “looky loo” traffic, could strategically place themselves on the side ads on Google. This would result in “filtered” traffic, customers who actually wanted to click on the ad because they sought it out.
In the new model, advertisers thrust to the top will see increased spending due to the additional “looky loo” traffic, traffic that won’t convert as easily.
The market will have to adjust, but I see it as another squeeze on a PPC model that will be difficult to maintain in the long run.