The Google Adwords Auction Changes effect the Relevance, the click through Rate, On Page Optimization, linking to and from and the impression shares of PPC Client websites. Many have seen an impression shares drop due to these changes. Others see it as simply a drop in traffic to their websites and then mistake it for a slump in the current economy. Hal Varian is the Chief Economist at Google and has made a video to explain these changes to the Google Adwords program.
This 9 minute Hal Varian Adwords Auction Video on YouTubetouches briefly on the value of impression shares and conversion rates involving the cost of PPC clicks using these new Adwords Algorithmic changes.
The major factor in these change is that the Google Ad Auction process is switched to a multiple SEO algorithm combined with the PPC sponsored link cost. The aim here by Google is to place sponsored linking ads on the top of page one of Google that are SEO optimized and are linking to SEO optimized websites. These changes are only a few months old here in 2009 and were not published when they can into effect.
A website QUALITY SCORE is going to be the deciding factor in PPC going forward. The big spenders of the past who ignored optimization of their websites and PPC campaigns are losing ground fast. Google has written the new algorithms so that, if every effort to comply Is not made, the punishment will be a red ROI.
Google PPC Keyword Relevance Algorithm Changes
Recently Google made changes in it's PPC algorithm which are critical to the management of Sponsored Linking campaigns.
As of 9/19/08, Google made some very significant changes in the way they look at sponsored link landing pages. The focus of Google's Pay-Per-Click algorithm now is your ad quality and keyword relevance as it pertains to your landing pages. Google's mindset is that they want the user to get a better experience when using Google's search engine. Google issued no warnings regarding this change just a newsletter.
This change is a true budget breaker for the uninformed small business owner. And will have a negative impact on any sponsored linking campaign with the least lack of content relevancy or too much flash that Google and the other major search engines cannot read, etc...
This change simply put, means any website not highly optimized will be hidden from the average readers view on the major search engines forever, no matter how much money is spent on advertising. Due to these and other changes with the major search engines, Your Pay-Per-Click Sponsored Link Advertising cost may rise as well! As an example of how your Pay-Per-Click Bid Management Campaign may cost you more and be far less effect. Is simply that, the better your website is Optimized and the higher it is organically ranked, the less you will pay for your PPC Bid Management campaign.
Lets say you are paying 10 cents per click and you are on page #5 of Google. And your competitor is on page #2 and is paying 8 cents per click and is getting far more Reader exposure because he is closer to page #1. This all may seem unfair if you are the one who is paying more and making less.
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