AdWords Quality Score Overhaul: First Page Bids
As a result of migrating to per-query Quality Score, we 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.Translation:
- Quality Score was too restrictive. Google was leaving too much money on the table.
- Google wants you to bid higher. Google doesn't want any minimum bids.
Regarding point #1 about Google leaving money on the table, consider what Sergey Brin said during the Google Q2 2008 Earnings Call:
But clearly that’s not the ideal strategy indefinitely, because we don’t want to end up with no ads. And in fact from a quality point of view, we now find our ads are a significant addition quality-wise to our page. They are just a very important source of information. We’ve been actually re-examining some of that. There was some evidence internally that perhaps we were a little overly aggressive in decreasing coverage in this past quarter.I do think the introduction of first page bid estimates is a useful feature for advertisers. However, I think it will also spur advertisers to dramatically increase bids. Short term, it will also create confusion - and angst. Long term, I wonder if this means Google will decide to show the bid necessary to achieve top of the page placement. That's been a hidden bid for a long time. Don't look for a "first page, top placement bid estimate" anytime soon, though. ;-)
Tags: adwords, quality score, first page, bids