Google Adwords Algorithmic Change

Google has made an algorithmic change to Adwords. No longer will you be guaranteed the position at which you bid for keywords. Instead Google has instituted a local parameter to the Adwords formula. Basically different regions see different sets of PPC listings. So a term you used to be #3 for everywhere could now be #3 in NY, #17 in TX, and #1 in PA. They base these new positions on how your keywords have performed historically in each region. So in regions where you had high CTR on "Bandana" you would still be #3 or higher, but in places you have done poorly historically, your #3 bid could be dropped as low as 30th or lower. There is also no way to see each regions listings unless you are in a region. Hence Adwords has removed a lot of control from businesses and keyword bidding is going to be exponentially more difficult and confusing. This is yet another reason for an analytics package so that you may see what regions leads and revenues are coming from and help untangle the new messy Adwords web. I estimate that this change took place in the 3rd week of June so you may notice keywords that you are spending a lot more or less on the past two weeks even though you didn’t change a bid or the content of a Google ad.

I confirmed all this with a Google account rep today on the phone once I noticed something seemed amiss. Over the next few days I am going to try to work up a new Adwords strategy that works with their new algorithm. I just thought I would give you a heads up as you would know better than I at this point if you saw any unusual changes in cost or ROI in Adwords keywords the past 2 weeks.