I know what Google says, “this will help the quality of our results.” But, like most (who ARE NOT Matt Cutts’ disciples), I am cynical when it comes to Google - just like politicians, Fox News and Clear Channel radio.

It seems that Google is making some changes to the algorithm that determines your ranking in the PPC listings - or Adwords for the brand conscious. To review, Google bases your rankings on quality, CTR and CPC. Currently, Google uses your actual CPC to help determine rankings. In other words, it uses what you’re paying, not what you’re willing to pay - or your maximum CPC.

Well, it seems, that in the near future that formula will be tweaked to consider your maximum CPC in the ranking algo instead of your actual CPC. You won’t have to pay that max CPC (necessarily), but, according to Google, this will give advertisers more control over obtaining a top ad spot.

Maybe so, Google. But it will also encourage users to increase their max CPC in order to get better rankings under the impression that a higher max CPC will increase rankings - regardless of what your actual CPC will be. And, while users will still pay an “actual CPC,” when everyone suddenly raises their max CPC, the actual CPC will follow - because your actual CPC is dependent on what the other advertisers’ maximum CPC is.

Google makes more money, you have a harder time maintaining a positive ROI, and Google moves one step further toward world domination. Read more about the apocalypse here:

Want That Top Ad Position On Google? The Rules Are About To Change


Tagged as: Google, Search Engines, SEM, Online Marketing, , , , , , , , ,