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Google Tweaks Its AdWords Algorithm
A slew of companies rely on Google’s AdWords system to bring users to their sites. But in an attempt to improve the quality of AdWords, Google will unveil a new judging system in the next few days that could have a major impact on current AdWords users.
The most important change the company announced Monday has to do with how it calculates the AdWords Quality Score, which helps determine the order of each ad for a given keyword. Google said that it will now calculate quality in real-time as a Google user performs a search, along with its current practice of analyzing click-through rates. Google also said that it will less frequently analyze landing page quality than previously.
Google is also eliminating its “inactive for search’ moniker for those keywords that would yield few (if any) impressions. The company said that all keywords are now available on Google.com and although the company said those keywords will probably still yield less than ideal results, they may add some impressions for those sites using them.
Finally, and perhaps the most controversial, Google announced that it will replace “minimum bid” prices with “first page bid estimates,” which will probably see rates go up. According to Google, on those keywords that have few advertisers bidding for placement, the new bid estimate should be close to the old minimum bid. But for those companies that want first-page placement on keywords that are more popular among advertisers, the cost could be “significantly higher.”
Google didn’t give any word on exactly when the new system will be rolled out, but it should happen over the next few days.
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Upcoming Reports Changes: August 19
We plan on rolling out these changes on Tuesday, August 19.
The values returned by the following columns will be changing. Please note that some of these columns are only available for reports scheduled via the AdWords web interface, not the AdWords API, but we're listing them here in case you use the AdWords API to retrieve and process such reports.
- CustomerTimeZone: the time zone information will be returned as, e.g., the previous "America/New_York" will change to "(GMT-05:00) Eastern Time".
- Time aggregation columns: the columns representing the aggregation time period (e.g. weekStart) will represent date ranges in a different format. E.g. the previous "2008-06-01-2008-06-01" will now be returned as "6/1/08 - 6/1/08".
- Keyword: values for category-based website criteria will change from, e.g., "docvertical::3" to "Animals >> Endangered Species". Values returned for keyword or non-category-based website criteria should not change.
- Interactions: the name of reported interactions will change from, e.g., "VideoPlayTime25" to "Video Play Reached 25%."
There are also fixes to edge cases in which values for the impressions and the position preferences columns that were previously returned as invalid values should be more accurate.
If you would like to test your application against these changes ahead of time, please visit the AdWords web interface and log in as an account in which you normally would run reports. Visit the "Reports" or "Client Reports" tab, select an existing report from the list, and when viewing the report, use the "Export Report" button to download the report as a .xml file. This XML should match the report XML that you will retrieve via the AdWords API after the changes are put in place.
