The two Google updates are: More precise Quality Score calculation and Higher quality ads above the search results. We’ll take a look at both of these updates and how they will impact you, if at all.

More precise Quality Score calculation

Google will now take into consideration the ad position and its influence on Clickthrough Rate (CTR) when calculating Quality Score. While there is no doubt that ad position was already considered previously, Google will now give more weight to the ad position when considering CTR. We’ll take a look at what these changes mean for the end user, for Google, and for the advertiser.

What this means for the end user

As Google writes, these changes allow “Google to show the most relevant ads to searchers by rewarding high-quality advertisers with better ad positions.” While we may not always see Google’s updates as the most beneficial for relevant ads (i.e. extended broad match), this update should definitely aid in providing the end user with the most relevant ad, by making it easier to move up any ad that has higher CTR potential.

What this means for Google

Google now maximizes their chance to get the ad with the highest CTR potential into a position that will allow for maximum performance, which equates to maximum revenue for them. This update also allows Google to move ads into optimal position faster. Ad testing and winning ad detection in order to find its best position in terms of optimum revenue will be quicker as a potentially high CTR ad will be detected even at lower ranks.

What this means for the advertiser

Ads that are in top positions managed by eSearchVision are not likely to be impacted. They have reached their top position due to their high quality using the “old” Quality Score algorithm. Unless a new competitor ad shows exceptional relevancy and potential for increased CTR in a higher position, the ads in top positions are likely to retain their high ranks due to their accumulated good history. The ads that are potential risk are those that reached this position with high max bids, and not based on high relevancy.

Ads that are in lower positions managed by eSearchVision will now have potential to move up in the ranks based on their potential CTR. Campaigns that are effectively managed with match type control and proper negative keyword management will see the greatest benefit with this change. Following our R.C.S. process (Relevance, Control, and Scalability), allows our ads to be at the maximum advantage. Our best practices enable us to maintain the highest possible CTR for ads at any given rank and the lowest CPCs through our focus on match type control.

Summary

This update will allow Google to serve the most relevant ads possible while simultaneously giving them the opportunity to reach the optimal revenue per page faster. As eSearchVision has always placed heavy emphasis on improving relevance, our clients seek to gain the most with this latest update.

Higher Quality Ads above search results

Google will now place greater emphasis on quality in order for an ad to reach the yellow space above the organic results (commonly referred to as “Premium Listings”). The biggest change in the algorithm is that it provides ads that were not previously in the top position the opportunity to be “jump over” ads in order to get to this top position.

This new feature is a logical complement to the first one. Google will detect “potentially high CTR” ads and test them in the top position. This, once again, will serve the end user by highlighting the most relevant ad, even if the former first ad was there because of a high max bid and not due to its relevancy. Google is able to maximize its global CTR on the search result page. Finally, the advertiser is again rewarded for relevancy. Following eSearchVision’s best practices offers our clients a considerable opportunity to move into the premium spot due to the high relevancy of our ads.

Summary

This update will give a more prominent position to ads that are most relevant, even if it requires jumping over an ad that does not meet the quality threshold. Optimizing for quality and relevancy offers our clients a considerable opportunity to move into the premium positions.