Google Simplifies their AdWords System

Google AdWords is a complex powerful marketing platform which makes it easy for marketers large and small to deliver targeted demand based advertising.

To scale the AdWords system Google tries to automate as much of the ad sales process as possible. In the same way that some people manipulate search relevancy, others profit from the loopholes in the AdWords system.

Many affiliates would bulk upload terms to drive traffic to eBay and other large network sites that can fit nearly any need. Google tried stopping this by:

  • using historical data to determine the probability a new ad would be relevant

  • disabling terms they thought would be exceptionally irrelevant right from the start
  • only allowing advertisers to test a certain number of potentially low relevancy ads at a time
  • disabeling terms with a low clickthrough rate

Many good ads were thrown out with the bad ones though. Many advertisers complained, and Google has decided to dump some of the complexity of their ad system. Instead of ads being in test, disapproved, on hold, or running now the system has two simple states: active or inactive.

This new change allows you to pay a premium to run lower relevancy ads and also gives you deeper discounts for exceptionally relevant ads. This new change will lower the cost of quality ads and uses efficient market theory to make it more expensive to run untargeted bulk eBay affiliate ads.

Google highlights the major changes on the AdWords site:

  • The keyword statuses normal, in trial, on hold, and disabled will be replaced with active (triggering ads) or inactive (not triggering ads). In addition, accounts will no longer be slowed. Currently, accounts are slowed when they don’t meet our performance requirements and your ads appear rarely for your keywords.

  • New keywords will no longer be disabled or have a minimum clickthrough rate (CTR) threshold. Instead, your keyword will trigger ads as long as it has a high enough Quality Score (determined by your keyword’s CTR, relevance of ad text, historical keyword performance, and other relevancy factors) and maximum CPC.
  • Ad Rank, or the position of your ad, will continue to be based on the maximum CPC and quality (now called the Quality Score).
  • Remember: The higher the Quality Score, the lower the CPC required to trigger ads, and vice versa.
  • You can move an inactive keyword to an active state and show ads by (1) improving its Quality Score through optimization, or (2) increasing its maximum CPC to the minimum bid recommended by the system.
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