Currently the formula for top ad placement considers two factors: quality score (the greatest determining factor), and actual CPC. Soon, this would change.
Google has announced “upcoming change to the top ad placement formula“:
The key change to the formula will be how we consider price. Today’s formula considers an ad’s Quality Score and actual cost-per-click (CPC). The improved formula will still heavily weight Quality Score, but instead of actual CPC, it will consider an ad’s maximum CPC.
More: How is the formula for top ad placement changing? [via AdWords FAQ]
1 response so far ↓
1 Andrew Scaife // Aug 14, 2007 at 9:01 pm
Typical double edged sword from Google … yes it will help the richest advertisers to get top spot easier - but will make Google more money in the long run as more and more advertisers have to up their maximum CPC (and therefore potentially spend more).
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