Improving Ad Quality, Part I

The Equalizer

Change can be scary. But fear is typically a function of control. If you feel like you have control of the situation you’re less likely to be scared. Think of it like the difference between swimming in a pool and swimming in the ocean.

We’ve just announced that, on February 5, 2007 in the U.S., we will be introducing another major change—we’ll be launching a new ranking model that determines the ranking in search results based on bid amount and ad quality. Essentially, higher quality ads may receive better placement in search results.  

To some, this may be scary because you feel as though you are losing control over the rank of your ads.  However, there’s another way to look at it:  This change can be The Equalizer. Achieving a particular rank is no longer simply a function of the amount of your bid. By taking an active interest in improving the quality of your ads, you can compete—and perhaps win—against competitors both big and small. You can win because as you develop more relevant ads you may be rewarded with better placement.

Let me offer an example of how this can play out.  Imagine a user is searching for “televisions.”  Below is an example of two ads ranked according to the current system—max bid:

Hot Savings
Hot deals on all electronics. Click here for savings.
http://www.planet-of-electronics.com/

Televisions from Electronics Planet
Plasma, flat screen, HDTV and more. Free shipping on select models of televisions.
http://www.electronics-planet.net/

The second ad, “Televisions from Electronics Planet,” is clearly more relevant than the first ad, “Hot Savings,” for that particular search. However, under the old current bid-to-position ranking model, it the second ad would be relegated to the second position because this advertiser has not bid enough. But under the new ranking model, “Televisions from Electronics Planet,” could appear higher in search results without actually having to beat the higher bidder’s bid because of the ad’s higher quality. And, in some cases, the cost-per-click (CPC) could actually go down at the same time. (For a little more on how an ad’s quality is determined, see our previous post.)

Taking control of your ad quality
To take control of this change, you have to understand how you can improve the quality of your ads. In coordination with the launch of the new ranking model, we thought it would be important to spend the next couple of posts focusing on three features of the new advertising system that you can take advantage of to help improve your ads’ quality:

• Insert Keyword feature
• Ad Testing
• Ad Group Structure

Each of these features can be used to help increase the relevance of your ads to the keywords that you are bidding on, and to the searches on related terms. In a nutshell, improving relevance is how you can best improve your ads’ quality and thus, possibly, your ranking. We’ll go into detail on each subject in the coming weeks.

Yes, this change is a big one. And yes, this change may require some effort on your part. But by taking an active role in improving the quality of your ads, you’ll be one step closer to leaving the scary ocean behind and floating in a refreshing pool with a tropical fruit cocktail in your hand. Ahhhh…

—Michael Egan, Sr. Director, Content Solutions