Saturday, May 1, 2010

Top Ad Position On Google?

Google released an updated algorithm to determine the ads that are displayed in the top ad spot, above the organic search results.
The updated algorithm will continue to use the quality and cost-per-click (CPC) figure but will be slightly tweaked for that top ad position. Instead of using the actual CPC, Google will use the advertiser’s maximum CPC in the overall equation. In addition, Google will be applying a stricter threshold on the quality component for the top ad positions.
Nick Fox, Product Manager of Ad Quality at Google, told me that this will help produce better quality ads in the top ad position because they are adding that stricter threshold for those ads. Plus, this will give advertisers more control over obtaining a top ad spot.
Google uses a quality score plus CPC model to rank all their ads. In the past, to achieve a top slotted ad position, you would need to meet a certain overall threshold in both quality and CPC price. Google, as stated above, is changing that algorithm to be more sensitive of the quality component, while also adjusting the figure used to determine your CPC. Now, Google uses the "actual" CPC, but in the upcoming weeks Google will use the "maximum" CPC.
What is the difference between actual CPC and maximum CPC? Every advertiser has to set a maximum CPC for their keywords. But an advertiser won’t necessarily pay the maximum CPC price when their ad is clicked on. In fact, most of the time advertisers won’t pay that amount. Instead, they will pay an actual CPC, which is lower than their maximum CPC.
For example, say I have an ad with a maximum CPC of $0.50, but there are no competitors in my keyword ad space. In that case, I will probably pay an actual CPC of $0.05 and not the $0.50, since I’m not competing against anyone.
In the past, Google used the actual CPC in the ranking algorithm for the top ad position. In the future, Google will be using that maximum CPC. As you can see, this gives advertiser more control on achieving that top ad position. Back to our example above. This advertiser who has been noticing a $0.05 actual CPC, will now be credited for his maximum CPC of $0.50 and will thus have an easier chance at obtaining the top ad spot.
Can advertisers abuse this? Possibly, but with the stricter quality threshold, it will be less likely. It is important to note that Google said while the current algorithm weighs both quality and CPC somewhat equally, the new algorithm for the top ad position will weigh quality substantially more heavily then they have in the past NOTE: Google has followed up now to say that quality is weighted more heavily now and in the new system, the combined threshold of quality and CPC will be higher. We're double-checking further on this,. Google is implementing this new algorithm change so that those top ads will have a higher quality, so I suspect their tests proved to yield a high quality outcome. So who will be impacted by this change? Well, right off the bat, those who have top ad positions for their ads will see a lot more competition in those areas. However, Nick Fox told me that there will be a "relatively limited" number of advertisers impacted by this change.

Three important Link Building Strategies to improve Rankings of a Website
Inviting many other niche websites to get linked with your site is comprehended by search engines as a sort of validation of the value or credibility of your website and the larger the website that is linked to yours the more your search engine ranks is likely to get boosted.
Let’s understand the best ways to build back links to increase both your search engine rank and your traffic.
Social Bookmarking: Submitting any content to social bookmarking websites exposes your content to the entire membership family of that particular website and when you think about how popular bookmarking websites are it is easy to imagine the size of their membership enrollment. Generally users consider about what you have posted is going to generate interest for many other users and they might find it interesting. Therefore share it with others and the potential of developing numerous back links to these websites makes this method very effective means for building incoming links back to your own website.
Marketing through forums: Visiting your niche forums and taking part in their group discussion topics serves many users for you and here not only you are bound to pick up useful information but while leaving comments you also can leave a link to your website in your signature file by this way you have created an opportunity for many to not only visit but also to link with your web site. Usually this technique is fairly alike to bookmarking websites except that the traffic at forums is much more targeted for your needs.
Article writing and submission: You should get understanding of article writing and should submit articles to online directories for circulation on the internet because this method not only gives you tremendous exposure but also it creates back links from some of the highest ranking websites on the internet. By simply placing a link to your own website within your resource box this will help once your article has been published then you can have a link with the article directory site.
Improving your website’s rankings in the eye of Google is one of the most fundamentally sound strategies that you can implement when working online and positioning your website to receive as much free traffic as possible can be the achieved by increasing your search engine ranks. One of the most effective ways to do this is by developing as many back links as you can with other websites online and use these techniques that discussed here because they are great at building links but it must be noted that these techniques will require a continuous effort to get the best results. However the efforts that you invest in building links will be paid back in the form of increased search engine ranks and the traffic you receive.

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