Google AdWords, it’s all about paying more?
Google did some changes in the AdWords program, and since it did that the bidding expenses seem to have increased a lot. First of all, from the 50 keywords I had bids placed for, 49 of them became “Inactive” and the only way to make them active again was to double the bid for them. It’s true, those instantly became active so this is an improvement, but I’m sure this change increased the expense for lots of AdWords bidders.
How’s “Goodle” explaining the new changes:
“New Keyword States and Quality-Based Minimum Bids
We’ve simplified our keyword status system and introduced quality-based minimum bids, giving you more control to run on keywords you find important.
Each keyword now has a minimum bid that is based on the quality (also called Quality Score) of your keyword specific to your account. If your keyword or Ad Group’s maximum cost-per-click (CPC) meets the minimum bid, your keyword will be active and trigger ads. If it doesn’t, your keyword will be inactive and not trigger ads.
- The keyword statuses normal, in trial, on hold, and disabled have been replaced with active (triggering ads) or inactive (not triggering ads). In addition, accounts are no longer slowed.
- New keywords are no longer disabled and don’t have a minimum clickthrough rate (CTR) threshold. Instead, your keywords trigger ads as long as they have 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, is based on the maximum CPC and quality (also 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.”
It’s not a real pain for me, but for someone that uses thousands of keywords daily for bids this sure hit them hard, because if the bidding expenses increased with at least 100% for some keywords, I’m pretty sure that the conversion rate didn’t increase that much. Well let’s see how this goes, to me it just seems Google wants to pull out more money from Adwords, not so “subtle” as their intent to sell $4 billion worth of shares.