08-15-2006, 04:50 AM
zach Wrote:I don't understand how bid prices can be raised because of an algorithm change. I always thought that the principle is that all ads start off at the same price (bid), and as advertisers pay more than the current bid to get the top result, the price of the bid goes up. If this is only an algorithm change, and assuming millions of advertisers haven't been added over night, why is the price suddenly higher per bid?
They changed the program so there is a quality component now. So your price can be inflated due to the quality score. So basicaly if Google deems your site to be of a lower quality you will pay more per click. I believe the intent is to get people to improve the quality of their landing pages, not to necessarily get people to pay higher click prices.
I consider it a soft ban as in many cases the click prices will go to $10.00 from .10.