According to SERoundTable, and following several posts on WMW Google Adwords price changes is out, however, it seems as if Google is rolling the change slowly.

Apparently some people have started seeing these message on their interface:

We’ve simplified our keyword status system. Your keywords will now either be active (triggering ads) or inactive (not triggering ads). Quality remains the most important factor in your keywords’ performance. Each keyword will now have a minimum bid that is based on the quality of your keyword and ad text. If your maximum CPC doesn’t meet this minimum bid, your keyword will be listed as inactive.

What you should do differently:
If a keyword is listed as inactive, improve its quality through optimization, delete it, or raise that keyword’s maximum CPC to the minimum bid indicated. (Raising the bid will re-activate the keyword.) If your keyword is active, you don’t need to do anything.

This simplify the idea for newbies but I keep on wondering how this price floor is going to affect advertisers, cost, and Google’s own revenue. I can guarantee that it is not going to lower Google’s revenue, but these days of ASK launching their own sponsored listings program, and MSN with it’s own similar program, why would one go and raise its’ prices?

This entry was posted on Tuesday, August 16th, 2005 and is filed under Pay-per-Click. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.