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Monday, July 18, 2005

MediaPost Publications Home of MediaDailyNews, MEDIA and OMMA Magazines:
"Google Refines AdWords Bidding System
by Gavin O'Malley, Monday, Jul 18, 2005 6:00 AM EST
GIVING ADVERTISERS A LARGER CANVAS on which to craft their AdWords campaigns, Google late last week streamlined its keyword status system and introduced minimum bids based on the ads' relevance. Some representatives from search engine marketing firms said the changes should have the effect of making more inventory available. Google now will determine minimum bids based on a quality score that combines historical keyword performance among all advertisers with the performance of an ad from an individual advertiser, and the relevance of the creative, or ad text...

...And what is Sardou's explanation for the latest changes to AdWords? "Google's problem is that the search world is flattening out, and the number of clicks available times the cost is leveling off, plus the rate at which people are getting onto the Web is slowing," said Sardou. "Inventory is really the issue now.""

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