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August 17, 2005

Adwords Update

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Guest Entry by Erin O’Brien, SEM Analyst-Bruce Clay, Inc

Yesterday Google unleashed the new simplified keyword states and quality-based minimum bids for AdWords. They have said goodbye to the (often confusing and frustrating) normal, in trial, on hold, and disabled keyword states, and keywords will now be either active or inactive, depending on their Quality Score and maximum CPC.

We haven’t noticed much change in the accounts that we manage other than the keyword status going from ‘normal’ to ‘active’. We ran one of their new reports to see what the keyword min. CPC’s were and most of the keywords we bid on now have a min. CPC of > $0.03. One has a min. CPC of $0.20. This is different than the prior system where the min. CPC was $0.05 no matter what. The new system takes "quality score" into account when determining the min. CPC and creates a unique min. CPC for each keyword. Over the next couple of weeks we’ll keep you updated on how this new change affects our campaigns.

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