AdwordsTip.com

Google recently announced on its Adwords blog that changes in the Google Adwords system are right around the corner. The update will feature three major changes you will want to pay attention to.

• On-the-fly Quality Score calculation – according to Google, Quality Score will now be uniquely calculated for every single query.

• No more “inactive keywords” – all keywords will be active and subject to the new real-time Quality Score calculation.

• No more minimum bids – the minimum bid calculation will be replaced by the first page bid estimate.

What does all of this mean for PPC advertisers?

While its difficult to pin-point Google’s long-term plans, this appears to be a step towards Google’s mission statement of  “delivering the most effective search advertising possible”.

I believe the first change (on-the-fly quality score calculation) will take into consideration not only the location of the user performing the search but also the time at which the search was executed. Ultimately, I believe geo-targeted ads with relevant landing pages will be rewarded.

The second change, (no more inactive keywords) – will in theory open the doors for increased competition on lower ranked terms – ads listed on page #2 +. Expect to see more ads on secondary pages and less expensive costs per click – relatively speaking, of course.

Expect the third feature (removal of minimum bid prices and the introduction of first page bids) to undoubtedly increase competition for first page terms. Ever wonder what it would cost to see your ad on the first page? Well, now you will know and many advertisers will increase their bids for prime real estate.

Looking ahead, the Adwords changes will benefit advertisers with large, geo-targeted keyword list and  increase competition for first place positions. Don’t get caught in the bidding wars, think strategically and develop creative keyword lists to off-set the expected increases for first page terms.

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