Initially, I was a little sceptical about this change, and I still am. As Google suggests in its post, we’ll have to monitor campaigns over the next few days or weeks (depending on the number of clicks you usually achieve) to see what difference this makes.
Actually, I have established a circumstance where this is beneficial. During the last week, I was revising a campaign. One particular ad was consistently achieving #3 or #4 spot. On increasing the bid price to put it in to the top spot, the ad actually achieved less clicks and cost more per click, but remained in the #4 position.
The advantage is this: with these changes, assuming your ad and landing page fulfils the required quality score, you can now get to the top spot much more easily. Before, you had little control over your average CPC; you do have control over your max bid price, although it may be more than you’re willing to pay.
Inside AdWords: Improved top ad placement formula now in effect
Beginning today, the actual CPC you pay for an ad in a top spot will continue to be determined by the auction, but subject to a minimum price. The minimum price is based on the quality of your ad and is the minimum amount required for your ad to achieve top placement above Google search results. As always, your actual CPC will be discounted and the higher your ad’s quality, the less you will pay.
And yet, I still think this move says profit, not (e)quality. What do you think?
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