VN:F [1.6.3_896]
Introduction to the update: This update mainly pertains to two main changes that Google has decided to come up with in order to rank ads better. First one being more precise quality score calculation & the second one is promoting more & more high quality ads in the yellow region above organic results.
Google has recently launched the improvements to Ads Quality that they announced in Nov, 2008. These improvements better evaluate the precise quality of your ads and improve the way they determine which ads show in the yellow region above the search results.
Google also wanted to emphasize that AdWords has always accounted for the influence of ad position on CTR and removed it from the Quality Score. This specific improvement updates this system to make it fresher and more accurate.
Though any immediate changes are not needed on the advertisers’ part, but Google encourages them as always to watch their key metrics and to make adjustments as appropriate.
Following are the two major changes Google has decided to bring in:
More precise Quality Score calculation
Clickthrough rate (CTR) is the most significant component of Quality Score because it directly indicates which ads are most relevant to our searchers. As you probably have observed, ads in high positions typically earn better CTR than those in low positions, because ads in high positions are more visible to searchers. To calculate the most accurate Quality Scores, it’s important that the influence of ad position on CTR be taken into account and removed from the Quality Score.
In the coming days, we’ll update the portion of the Quality Score algorithm that accounts for ad position. This will result in more accurate Quality Scores, ensure that ads compete fairly for position based on their quality and bid, and enable Google to show the most relevant ads to searchers by rewarding high-quality advertisers with better ad positions.
Higher quality ads above the search results
We’re also improving the way we determine which ads show in the yellow region above the search results. These positions are particularly valuable to advertisers because they are prominently positioned on the page. Given their prominence, it’s especially important that these ads be high quality; we therefore place extra emphasis on quality when determining which ads to show in this location.
To appear above the search results, ads must meet a certain quality threshold. In the past, if the ad with the highest Ad Rank 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.
Source URLs:
http://adwords.blogspot.com/2008/11/update-on-improvements-to-ads-quality.html
http://adwords.blogspot.com/2008/10/improvements-to-ads-quality.html
Comments: This should certainly prove good for advertisers as well as for users because more ‘good quality’ ads would now show in top slots. Earlier Google used to take ad position as a parameter to calculate ad quality score. However, if this portion of the quality score algorithm is revised, advertisers would be prompted to create quality ads to rank on top rather than only assigning high bids to keywords in order to rank high. This would certainly create value & refine PPC advertising further.