Sep
1
2007

New Google AdWords Features Allow Publishers To Earn More Money

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Google’s new AdWords features appear to be a big hit from the AdSense side of things. I’m beginning to see a trend over the past couple of weeks which shows my eCPM revenue slightly increasing while CTR and Page Views are staying about the same. Optimize away Google!

I’m talking about two changes in particular:
Campaign Optimizer aka “buy more keywords, spend more money” – Gives suggestions on what keywords you may want to add to your account. Costs the advertiser more at times but allows them to reach a broader and more accurate audience.
Improved top ad placement formula – Now what you bid as your highest CPC rate determines a portion of your quality score. Even if you don’t spend your highest CPC rate on a particular user click, AdWords users willing to go higher will ultimately be spending more from setting their CPC number up. This also imposes a minimum cost for top ad spots. You can read Google’s article about their Improved To Ad Placement Formula to learn more about it. In conjunction with that you should note Google’s comments about their minimum price settings.

“First, your ad must pass our high quality threshold for eligibility to appear in top spots. If your ad is shown in a top spot, its price will be determined by the auction, but subject to a minimum price for top positions. This minimum price varies based on the quality of each ad per search query. For this reason, our system doesn’t display the minimum price.”

Of course they don’t display the minimum price because they might be trying to blindly pump a few extra cents from advertisers and/or have control over something like that down the road when you’ve long forgotten about this feature being added. Common, this is Google. If they can run a dynamic and algorithmic search engine like that I’m sure they could automate this. So far it sounds like the minimum prices have a lot to do with completion in a niche. So if your niche has little to no completion then AdWords users will be gaining an even higher CTR at lower costs but vice versa for highly competitive niches. This is great news for publishers and really underscores why you should be using this guide to arrange your ads: Multipule AdSense Banners Could Cost You Money.

I find some humor in the sneaky way they’ve been able to combine “hey lets optimize your account features” while getting AdWords users to increase their spending lately. Very smart tactic on their part. I’m rather surprised I haven’t seen much complaining about Google, but I’m sure there’d be a lot more complaints if we could see the half of the check Google gets from ads on our own sites. If everyone’s getting the results they want it must not be that big of a deal, right?

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