PPC Blog has posted an interview with Michael Gray aka Graywolf, answering many questions about the latest AdWords quality score update.
I found this part particularly interesting about how Google will charge full-price for keywords affected by increased minimum bids:
“Having the landing page quality algo completely independent to the rest of the Quality Score that makes up ad rank provides Google completely separate control over their minimum bids. How do you feel this will continue to effect advertisers & shape the industry moving forward?
It’s actually quite bizarre and frankly has some ridiculous outcomes. For example let’s say you get labelled as low quality and your bid gets raised to $5 or $10. Let’s say you are kind of crazy and decide to pay $5 or $10 what happens is you jump up to the #1 slot since everyone else is bidding $0.30 or $0.40 a keyword. Now the kicker is you get charged the full $5 or $10 not just a bit more than the bidder below you. The whole “your ad is low quality unless you pay through the nose” is actually ridiculous, and makes them look like they are in it for the money. If my ad is low quality don’t show it, plain and simple, end of story.”
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