July 17, 2005

Google AdWords Changes Keyword Status

The days of on hold, in trial, normal, and disabled keywords are over. They will now be known as only active or inactive. While this may seem as a big change targeted at making AdWords easier to use and understand, it looks as though it will actually make some aspects, such as bidding, more complicated.

Within the announcement from comes a new term, Quality Score. Quality score is an algorithmic equation that can be compared to the formula used for displaying organic results in that it uses a variety of inputs to calculate your rank and thus your position in Google's paid results. Instead of Google just using your CTR (click-through-rate) multiplied by your max bid, it will use a multitude of variables to determine your rank. The new official definition of your Quality Score is "your keyword’s clickthrough rate (CTR), relevance of your ad text, historical keyword performance, and other relevancy factors."

A keyword's Quality Score should help ads become more targeted by reducing the cost for highly targeted ads and increasing costs for less targeted ads. However, at the same time, it is beginning to make the management of search campaigns into a more complicated and time consuming job. Professionals will need to take these factors into consideration when setting up, implementing, and optimizing campaigns.

This may be a sign that the industry is getting more mature and extensive knowledge and experience of search and the engines will be critical to a successful campaign.

Links to this post:

Create a Link

<< Home

SEM Report Site Feed   SEM Report Site Feed