Google increasing AdWords cost on irrelevant ads

July 18, 2005

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Google announces it will be raising the price per click of less relevant AdWords ads.

Google has announced it will start charging higher minimum bids for keywords for those advertisers whose placements prove less relevant to users.

A �Quality Score� will be associated with each ad, determined chiefly by performance, and the resulting minimum bid for a keyword may change over time.

This simply means that different advertisers will have to pay 1 different price per click at the low end of the keyword bid scale.

This will allow Google to reap more ad revenue from advertisers it previously shunted aside, in an effort to increase the general relevance of its ad panels.

The immediate practical result for existing Google advertisers is that keywords that were previously put on hold by Google may suddenly awaken, so long as their maximum bids exceed the new minimum bid set by Google based on the ads� Quality Scores.

Source: Search Engine Journal

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