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September 16, 2008
Google alters AdWords, prices may rise

Google will rollout changes to its AdWords Quality Score system, the company announced on its blog

According to Google, it will now calculate the Quality Score in real-time while the user is performing a search. That data will be combined with the company's existing practice of analyzing clickthrough rates. However, the company said it will put less emphasis on looking at the quality of landing pages.

But while those changes may improve the effectiveness of an ad buy, one change Google is making could significantly alter the price of ads. The search giant said it would abandon its "minimum bid" feature and replace it with "first page bid estimates." According to Google, advertisers that want first-page placement for popular keywords can expect to pay rates that are "significantly higher."

Google has not said exactly when the new changes will take effect.

Meanwhile, Google continues to face opposition to its proposed search deal with Yahoo.

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