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November 14, 2004

Feeling Normal at Google

Posted by Todd Tweedy

The familiar Google CTR performance ratings of Strong, Moderate, At-Risk, and Disabled have been replaced by a new labeling system. Nothing really interesting about these new normalized states, however, Google's explanation of the labels is:

"There are a limited number of in trial keywords per account, so when this limit is reached, additional keywords will be moved to on hold status with priority given to those keywords with higher predicted CTRs. Accounts that have proven to perform very well will be rewarded with a greater number of in trial keywords. The limitation placed on the number of keywords that may be in trial helps ensure that users continue to see the most targeted, relevant ads via the AdWords program. "

What does it mean?? Keyword limit restrictions for AdWord accounts. Perhaps. Relevancy qualifications based on destination URL meta data or domain names? Definately. Google's first step to restrict affiliate advertisers? Anyone's guess...

It's clearly one small step in a strategic direction for an ad serving platform that is saturated with text-based ads. The question is how far will Google go to enhance their users experience? Remove dynamic keyword insertion for in-trial AdWord accounts? It could happen sooner that you think.

Talk to you soon,

Todd Tweedy

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You can read more about Google's changes here:
https://adwords.google.com/select/performance_changes.html
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Content taken from Google.com

Improved AdWords Minimum CTR and Performance Monitoring

We wanted to inform you of changes in the keyword evaluation process that will help focus your advertising dollars on keywords with proven relevance for your ad campaigns. These changes will help our users find exactly what they're looking for and improve the overall advertising experience for both our users and our advertisers.

What is changing

We've streamlined the keyword review process so that your keywords and their related ads get the chance to run with less of a restriction on their accruable impressions.

The minimum clickthrough rate (CTR) of 0.5% won't be changing. However, when you submit a keyword, we'll now predict its CTR based on data such as the performance of your account and other accounts with the same or similar keywords. This ensures that we make our prediction based on a careful review of all available keyword data. Depending on a keyword's predicted CTR, the keyword may enter one of several states.

How this will affect you

The most noticeable change you'll see within your account will be the keyword status labels for some of your keywords:

Previously strong, moderate, and at risk keywords will now be labeled as normal.
Keywords may also be labeled as in trial or on hold. *
Only in trial keywords may be slowed.
On hold keywords will not show ads unless they move to in trial.
*To learn more about these new states, click here.

The status label, based on your keyword's clickthrough rate (CTR) on Google search pages (not sites on the Google ad network), indicates the state your keywords are in. Your keyword states can be any of the following:

Normal: Targeted keywords are above the minimum 0.5% CTR on Google search pages, and their associated ads show regularly. There's currently little to no risk to your advertising exposure. However, every Ad Group can use occasional optimization, so you may want to consider periodic re-evaluation of your ad text and keywords.

In trial: Keywords are below the minimum threshold and under evaluation. They'll continue showing ads until we're statistically confident their CTR is below or above 0.5%. These keywords may then become either normal or disabled. They may also be slowed if necessary. You may want to refine these keywords.

There are a limited number of in trial keywords per account, so when this limit is reached, additional keywords will be moved to on hold status with priority given to those keywords with higher predicted CTRs. Accounts that have proven to perform very well will be rewarded with a greater number of in trial keywords. The limitation placed on the number of keywords that may be in trial helps ensure that users continue to see the most targeted, relevant ads via the AdWords program.
On hold: Your account's in trial keyword limit has been reached, and these additional keywords are slightly below the minimum threshold. As more space becomes available, these keywords will move into in trial status and start showing ads, with priority given to those keywords with higher predicted CTRs. There is no limit placed on the number of on hold keywords you may have within your account. You may want to refine these keywords.

Disabled: Disabled keywords no longer trigger any ads. Keywords may be disabled if they don't meet the quality threshold or if they are older than 90 days and have never triggered an ad. If you still feel strongly about using these keywords, you have a few options.

To see an overview of the keyword evaluation process, view our keyword evaluation flow diagram. You can also review three examples of the path a new keyword might take when added to your account:

The path of a targeted and relevant keyword
The path of a keyword that needs further evaluation
The path of a poorly performing keyword