• Seeking Alpha , Thursday, August 16, 2007 11:45 AM

Google could reap a financial boon from the switch it's made in the algorithm determining when ads can run at the top of its search results page. That's the assertion from Barron's Eric Savitz, based on a research note issued Wednesday by JMP Securities analyst William Morrison.

In the note, Morrison asserts the new ranking methodology will drive "significant improvements" -- as much as two-times higher -- in click-through rates for queries that now have paid listings in the "north position" that did not have them previously. The end result could drive Google's gross revenue 2%-4% higher, Morrison says.

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