Does Google’s Improved AdWord Relevancy Affect You?

[Chris]

The other day, Google announced an algorithm update for its AdWords targeting. The update was designed to ensure that searchers would receive the most relevant, targeted ads according to the keywords in their queries.

While Google users may see improvements in ad relevancy, the question remains: how do these changes affect AdWord customers? First, a brief explanation of what was changed in order to improve ad relevancy is due.

Google states, “These changes will initially only affect broad-matched keywords.” Meaning, if you are selling red widgets but only bid on the keyword “widget,” for broad-matching purposes your ad may not appear on search queries for blue widgets. However, if red widgets are queried, your ad may be displayed even though you only bid on the widget keyword.

Essentially, Google is not disabling all broad match keyword variations; only those that are not relevant to the keyword you’ve bid on. Now that I’ve butchered this explanation, let’s see how these algorithm changes affect AdWord customers.

As mentioned in a previous article (http://www.webpronews.com/news/ebusinessnews/wpn-45-20040630GoogleImprovesAdRelevancyForAdWordsService .html), once word of Google’s relevancy update hit, the renowned search engine message boards were abuzz with the news. The general reactions commented that while Google’s description of the changes were a little cloudy; users welcomed a more relevant approach to AdWords placement.

Syzygy, a poster at WebmasterWorld (http://www.webmasterworld.com/forum81/2972.htm), offered, “whilst (Google) is being somewhat vague, I do believe I can see quite a bit of benefit in this.” Some believe the update will give higher relevancy to exact matches over broad matches.

“AdWordsAdvisor,” a poster with an inside to Google’s AdWords support staff, says this is just a result of the algorithm improvements: “Rather than favoring exact match as part of the algo, the system determines position in the usual way (Max CPC x CTR) for each and every broad keyword variation - and ranks accordingly. Since the exact match is likely to have a better CTR (assuming a well targeted ad), then it may well appear to be 'favored'.”

Google’s alterations caused customers to notice changes in ad performance, almost immediately. Forum member “johnnydequino” said he noticed a difference in the placement of his ads, with some appearing in 1st position. Johnny is of the opinion that Google had to make this change because he feels broad matching is “totally worthless” when it comes to searchers.

However, keep in mind that Google is not abandoning its broad match service. The goal is to ensure that the most relevant ads are shown with the corresponding keywords. Because broad matched terms are just that, exact matches will, according to Google’s algorithm, probably be given a better ranking.

If you are an AdWord customer who employs broad-match as your primary method of ad placement, you may have to consider optimizing your ad-copy. Either that, or refine your keyword bidding. These suggestions come directly from Google. If relevance becomes an issue for AdWords clients, Google also suggests (https://adwords.google.com/support/bin/answer.py?answer=8579&topic=131):

“1. Use multiword, specific keywords to remove singular and/or general keywords. You can use our Keyword Tool (http://adwords.google.com/select/tools.html) to refine your keywords.

2. Create new Ad Groups specifically containing your targeted keywords in your ad headlines or text.

3. Use keyword matching options to help weed out irrelevant searches. For ideas on negative keywords, look at the irrelevant results from our Keyword Tool as negative keywords.

4. Use descriptive and specific ad text to highlight the relevancy of your ad.

5. Delete poorly performing ads with low clickthrough rates (CTRs) to improve the CTR for your keywords and campaign.

6. Use keywords in your ad text to attract users to your ad. Plus, if a user searches on a keyword that appears in your ad, the word will appear in bold.

7. Review more tips (http://adwords.google.com/select/tips.html) on improving your CTR.”

[tcady]

Well I thought I saw an improvement. I am not using adwrods at all, but I watch them on my SERPs - mainly because my most important string contains an "adult content" word - evne though it is NOT realted at all. We sell 'industrial vibrators', and alot of Adwords (and even spammy SERs) showed up for adult content 'vibrators' shops becasue that one word is in the string. Now it seems there are not as many results being listed where they are paying for an AD for the one word 'vibrator'- but when you search for 'industrial vibrator' - now granted some sneaky sites have caught on that people search for this term - and have bought Adwords for my term even though the product is not realted - I geuss I might be at fault since I have to admit I have curiously clicked some of their SERs - when searching my strings - and then i geuss they have seen those on their server stats reports - who searched for what word and came to them - so now they market to this word - even though it's really spam for this word...
Anyway, my point is, the Adwords do seem to be cleaned up of results for just the word vibrator, as long as you put in atleast one modifier when you search. Though it does seem weird that sometimes the risque ADwords are there, and sometimes they are not...or not so many....weird....

[Peter (IMC)]

I would propose that Google decided to implement a Topic Sensitive Algorithm in its Adwords algorithms to determine relevancy.

Obviously for instance, an industrial vibrator will not be in any adult topical structure, and as a result that would improve the relevancy of adwords a lot.

Also it should be obvious that a lot of those adult types of marketeers are more interested in showing their ads all over the place than just to those that are actually searching for it. Though I can't understand what the advantage is of that, it does seem to be the way most of them work. And as a result they will try to abuse the adwords new algorithms as well.

Regards,

Peter

[daveberk]

Our site has been in the AdSense program since February. Over the past 5 months our click-thru rate has averaged 1.4%.

Since the change we have seen an average click-thru rate of 3% over the past two weeks.

Based on this increase I would assume the change is either delivering more relevant ads and/or the themes of our pages are better understood.

[Dave Hawley]

I think we need to keep in mind that a high CTR is of far more benefit to Google than those using AdWords.

Take this example. You are selling Software that is specific to accountancy. You design your ad and use the text;

"Buy our accountancy software. Cost is only $599.00"

Now, most clicks will be from those that are willing to pay the $599.00 and will be of a high qaulity. However, the CTR is more likely to be very low. Compare this to;

"Try our accountancy software for free. Accountants are using it every day."

You are much more likely to get a higher CTR than the ad metnioning the word "buy" and the cost $599.00. This of course means your ROI is likely to be much lower.

The best way to go, for Adword users, it to aim for a low CTR as apposed to a high CTR.

Adword users want a high ROI and low CTR. Google wants a high CTR and are not too concerned with your ROI.

[shifty]

as an adwords user with a mix of broad and exact match words, i have found that my broad match words show higher on a search than my exact match words, this is so for most of my key phrases, i changed some of my broad to exact and they done the same. i conclude from this that...........the reason for any google changes is not for the benefit of a searcher to show more relevant information.....but so google can make more money from broad matching terms.....more chances of hits so more money.....money will always be the key reason for almost all of googles changes, its not there for the good of your health.