Google is changing the rules of engagement when it comes to Google Adwords. Since February Google had explored on the removal of the "minimum bid" for Google Adwords. This means that the competition for Google Adwords on key phrases and words may mean that everyone can bid regardless of the starting bid but still the highest bidder wins.
Unlike before were the ability to bid is based on your Google Quality Score and the bid, the bidding will still be based on that but Adwords will not calculate the quality score in real time, as the searcher is searching.
According to Google,“AdWords will use the most accurate, specific, and up-to-date performance information when determining whether an ad should be displayed,”. “Your ads will be more likely to show when they’re relevant and less likely to show when they’re not. This means that Google users are apt to see better ads while you, as an advertiser, should receive leads which are more highly qualified,” Google added.
This changes the fact the only the highest bidder can land on the first page of a website because now while bidding you will be given a price which is calculated for you if you want to land on the sites first page. This gives credit to high budget advertisers who wants to really make the process of Google advertising faster.
One feature though that some advertisers might find inappropriate is the new Automatic Matching of Google Adwords. Meaning if an advertiser has surplus budget in his account, Google will make an automatic matching of what the advertiser wants and what is being searched. Google will in turn charge your account surplus for this feature. This is good for Google since it has the potential of increasing their revenue but might not be practical to most.
The case for example of seasoned advertiser, Jim Gilbert who had been one of the victims of Google's Automated Adwords matching. His original bid was for a 100% match for "wedding table decorations." This is called a “phrase match,” meaning he only wanted an ad placed if someone searched on all three of those words, in that order. However since his account is not moving very frequently Google Automatch his keywords. From that single phrase the automated matcher placed bids on searches including “wedding table decor,” “decorations for wedding tables,” “wedding cake table decorations,” and “wedding table ideas.”
The above search matches are still somewhat relevant to Jim's business and original phrase. However, what about the following placements, But many more did not, including “party table numbers,” “chocolate wedding favors,” “chocolate lollipops,” “Hersheys,” “wedding flowers,” “wedding flowers,” and “wedding gowns.” What happened? Jim spent a whooping 600 per cent more in his spending for Google Ads. That is a good news for Google and a bad one for Jim.
Te way you might be seeing it is that Google is expanding it's income base. This is because Google had seen a decline in advertising revenue during the first two quarters of 2010 and it is experimenting on new ways to make those dollars pour in for Google.
Both of the Adwords restructuring and the automatic matching are designed to earn more money from Google. However, the question is are they really helpful or are they intruding in some way?
For more discussion about this Google Adwords Changes, please visit the Geek Blog.