The AdWords blog has announced that the "Top Spots Ads" formula is live now. The change offers advertisers more control over when their ads achieve top placement, while also increasing the quality of our ad results for users.
The key change to the formula is how we consider price. Like the formula used for ranking ads alongside Google search results, the top ad placement formula now considers an ad's maximum CPC. Previously, the formula for top placement considered an ad's actual CPC. Since actual CPC is determined, in part, by the bidding behavior of the advertisers below you, your ad’s chance of being promoted to a top spot could have been constrained by a factor you couldn't influence.
As always, the top ad placement formula will weight Quality Score much more heavily in comparison to maximum CPC, which means that the quality of an ad remains the greatest factor in determining an ad's eligibility for top placement. In other words, an ad with a low quality score but high maximum CPC still cannot achieve top placement.
The actual CPC you pay for an ad in a top spot will continue to be determined by the auction, but subject to a minimum price. The minimum price is based on the quality of your ad and is the minimum amount required for your ad to achieve top placement above Google search results. As always, your actual CPC will be discounted and the higher your ad’s quality, the less you will pay.
If, on the other hand, you are thinking about making adjustments now, keep the following in mind:
- Review your account for maximum CPCs that are higher than the maximum amount you're willing to pay.
- Optimize your accounts to keep your costs down and your performance high. You can request a free campaign optimization from our support team here.
Google, AdWords, Top Spots Ads, Ads Placement, Ads quality, News Features, AdWords Features