In July 2005, AdWords introduced minimum bids for keywords based on Quality Score. This system allows us to show very high quality ads to Google users, while also giving advertisers control over their keywords. Since 2005, we've improved Quality Score in many ways, such as the inclusion of landing page quality and landing page load time as factors. Along the way, we've also received much helpful feedback from both users and advertisers.

Now they'd like to let you know of further improvements:

* Quality Score will now be more accurate because it will be calculated at the time of each search query
* Keywords will no longer be marked 'inactive for search'
* 'First page bid' will replace 'minimum bid' in your account

A more accurate Quality Score

Most importantly, they are replacing our static per-keyword Quality Scores with a system that will evaluate an ad's quality each time it matches a search query. This way, AdWords will use the most accurate, specific, and up-to-date performance information when determining whether an ad should be displayed. Your ads will be more likely to show when they're relevant and less likely to show when they're not. This means that Google users are apt to see better ads while you, as an advertiser, should receive leads which are more highly qualified.

Keywords no longer marked 'inactive for search'

The new per-query evaluation of Quality Score affects you in that keywords will no longer appear as 'inactive for search' in your account. Instead, all keywords will have the chance to show ads on Google web search and the search network (unless you've paused or deleted them). Keep in mind, however, that keywords previously marked 'inactive for search' are not likely to accrue a great deal of traffic following this change. This is because their combined per-query Quality Score and bid probably isn't high enough to gain competitive placement.

'First page bid' will replace 'minimum bid'

As a result of migrating to per-query Quality Score, they are no longer showing minimum bids in your account. Instead, we're replacing minimum bids with a new, more meaningful metric: first page bids. First page bids are an estimate of the bid it would take for your ad to reach the first page of search results on Google web search. They're based on the exact match version of the keyword, the ad's Quality Score, and current advertiser competition on that keyword. Based on your feedback, we learned that knowing your minimum bid wasn't always helpful in getting the ad placement you wanted, so we hope that first page bids will give you better guidance on how to achieve your advertising goals.

It's worth mentioning that the impact of these changes will vary from advertiser to advertiser; some might see no changes to their ad serving, while others may see a noticeable difference. As always, we recommend optimizing ads to prevent them from receiving a low Quality Score.

Putting it all together

Here's an example to illustrate how per-query Quality Score works:

Nancy's Dairy advertises on the keyword 'milk.' Nancy's ads perform better on the keyword 'milk' in the U.S. than in Canada. Her ads also perform better on the query 'milk delivery' than on 'milk,' and better on certain search network sites than on others. Instead of one static Quality Score and minimum bid that determines whether the keyword 'milk' is eligible to trigger an ad for all search queries, we will now determine eligibility dynamically, based on factors such as location, the specific query, and other relevance factors. For that reason, Nancy's keyword 'milk' will be able to trigger an ad for search queries where it's likely to perform better, i.e., in the U.S., on 'milk delivery' and on certain search network sites.


They're working to update the AdWords API and AdWords Editor so that, in the future, they will support first page bids. Until then, both the AdWords API and AdWords Editor will continue to show the minimum bid field. However, the information shown in this field will be based on the new per-query Quality Score. You may keep current with upcoming API releases on the API Blog and learn about upcoming AdWords Editor releases via the AdWords Editor Forum.

Finally, they'll release these Quality Score changes to a very small segment of advertisers within the next day or two, so that we can gather feedback before launching to all our advertisers. We will, of course, post again in advance of the time that these changes go live for everyone.

Today, at the Search Engine Strategies conference in San Jose, CA, the Website Optimizer team announced the launch of several highly requested product updates. For those unfamiliar with Website Optimizer, it's Google's free content testing and optimization tool. It allows you to test different variations of your site content to determine what will be most effective at getting you the results you want from your site. Website Optimizer's offering has now expanded to include:

Experiment Pruning: This new feature allows you to disable one or more combinations from taking part in your Website Optimizer experiments. Pruning can help you achieve faster, more meaningful results by allowing you to remove poorly performing or illogical combinations. This is especially helpful in cases where your experiment may have too many combinations relative to the amount of traffic it receives.

A/B Offline Validation: If your test or goal pages aren't accessible to Website Optimizer then no worries. You'll now be able to just upload a copy of your tagged page and Website Optimizer will make sure that everything is tagged properly.

More Intuitive Reporting: We've enhanced our reports to more clearly show how your combinations are performing, and to better indicate when we've found one or more high-confidence winning combinations. This will help prevent you from drawing false conclusions from results or from ending experiments prematurely.

If absurdist playwright Samuel Beckett were still alive, he might be tempted to write a drama about the Microsoft and Yahoo non-merger that seems to keep generating news and speculation. Better yet, maybe living playwright David Mamet will take a crack at some point.

The latest justification for writing yet another post about whether or not Microsoft will take another run at Yahoo is an eWeek piece in which Eric Jackson, who runs Ironfire Capital, a Yahoo investor, argues that Microsoft still needs Yahoo and predicts another acquisition attempt.

The larger article is actually more about how Yahoo has failed so far to execute on its new vision and renewal strategies and how the company still needs to make cuts and bring more focus to selected businesses and units:

"The company needs to make some fundamental changes if it's going to improve its performance and stock price. Yahoo is too bloated right now; they need to reduce head count, focus on core businesses and divest some of their holdings that aren't making any money," Jackson told [the reporter] after the meeting. "But it's only about the second inning [of the company comeback], although it's been the second inning for a long time. There have been a lot of pitches and foul balls."

What was one of the most dramatic and intriguing tech stories of the year -- will Microsoft succeed in challenging Google with the acquisition of Yahoo? -- has turned into a near parody of itself as it transforms into the story that refuses to go away.

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Pay per click (PPC) is an advertising model used on search engines, advertising networks, and content websites/blogs, where advertisers only pay when a user actually clicks on an ad to visit the advertiser's website. Advertisers bid on keywords they predict their target market will use as search terms when they are looking for a product or service. When a user types a keyword query matching the advertiser's keyword list, or views a page with relevant content, the advertiser's ad may be shown. These ads are called a "Sponsored link" or "sponsored ads" and appear next to or above the "natural" or organic results on search engine results pages, or anywhere a webmaster/blogger chooses on a content page.

Pay per click ads may also appear on content network websites. In this case, ad networks such as Google AdSense and Yahoo! Publisher Network attempt to provide ads that are relevant to the content of the page where they appear, and no search function is involved.

While many companies exist in this space, Google AdWords, Yahoo! Search Marketing, and Microsoft adCenter are the largest network operators as of 2007. Minimum prices per click, often referred to as Costs Per Click (CPC), vary depending on the search engine, with some as low at $0.01. Very popular search terms can cost much more on popular engines. Arguably this advertising model may be open to abuse through click fraud, although Google and other search engines have implemented automated systems to guard against this.