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Google Tweaks Bidding System

Google is updating the system it uses for judging ad quality to calculate results in real-time, Cnet reports. The so-called ad quality score is a critical measurement that influences how ads are placed next to search results. Google weighs both the ad quality score and the amount the advertiser is willing to pay in determining which ad to place. For ads with low quality scores, which are determined using criteria like click-through rate and the speed with which the advertisers' landing page loads, Google raises the minimum bid requirement. But changes are coming to this system, too.

According to Cnet, ad quality will now be judged at the time each user searches, instead of relying on old, static quality data to assess ad placement. This way, AdWords will use the most accurate, specific, and up-to-date performance information when determining whether an ad should be displayed," Google said on its blog, adding that it would test the changes over the next few days before deploying them across its network next week.

The change means that advertisers with low quality scores will no longer be barred from certain keywords due to their previous record. Google is also changing its mechanism for describing how advertisers can expect results. Instead of presenting a minimum bid, previously calculated using the old quality scores, the company will now show what advertisers should expect to pay to reach the highest placement. Watch out for this one; this is perhaps the most significant change.

Read the whole story at Cnet News.com »

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