In a post called Upcoming change to the top ad placement formula, Inside Adwords informs that Google will be making changes in its cost-per-click (CPC) figure factor.

For those who seek top ad placements Now, in lieu of Quality Score and actual CPC, AdWords will take into consideration an ad’s maximum CPC.

“Actual CPC is determined, in part, by the bidding behavior of the advertisers below you. This means that your ad’s chance of being promoted to a top spot could be constrained by a factor you cannot influence. By considering your ad’s maximum CPC, a value you set, you will have more control over achieving top ad placement.

In addition to increasing control for advertisers, the improved formula increases the quality of our top ads for users. This is due to more high quality ads becoming eligible for top placement, thereby allowing our system to choose from a larger pool of high quality ads to show our users.”

Barry Schwartz says the benefits are:

• Better quality ads in the top ad position for searchers
• More control for advertisers over their ads achieving the top ad position

So far, the date for when this new formula goes live is tentative, “The improved formula will go into effect within the next few weeks”.

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