Google Adwords change
Posted in Marketing on: Tuesday, July 26, 2005 by Paul Boag
As from the 2nd of August, Google will be changing the way Adwords work so if you run a Google Adwords campaign then now is the time to read up on the changes.
I am no emarketing expert but from what I have read Google are making two significant changes. These changes are to the keyword status and its ranking algorithm.
In this entry, I want to focus on changes to the keyword status as the ranking algorithm is largely beyond your control to change because Google will not reveal the details of how it works.
Simplified status system
Currently any keyword phrase in your ad campaigns can have one of four statuses: On hold, in trail, normal, and disabled. This system is going to be simplified to a keyword phrase being either active or inactive. Gone are trial periods and disabling keywords for failing to meet the minimum click through rate.
A minimum bid value
Everything is now based on a minimum bid value per keyword. If your keyword meets the minimum value, it is active, while if it falls below this value it becomes inactive. How this value is calculated is far from clear but appears to be based on a range of factors including but not limited to the previous performance of that keyword across all advertisers and throughout the Adwords network.
How this affects advertisers
Unsurprisingly these changes are partly designed to encourage advertisers to spend more. For example if you have lots of keywords on-hold or in-trail they will now suddenly become active (as long as you meet the minimum bid value) and so you will find yourself spending more for these extra keywords. You will also need to watch out because if your competitors are in the same position you may find that competition for some keywords becomes fiercer as their on-hold/on-trial are activated.
What action to take
From what I have read, the one thing advertisers definitely need to do is look again at their disabled keywords. Consider whether these keywords belong in your campaign. If they do, then reactive them, once you have associated them with the right ad group.
Further reading on this subject
