Google 'Optimized' Adwords ?? Really???

Google has implmented a feature in Adwords that gets turned on by default,
and as I see it may be harmful.

From their website; "AdWords will automatically show ads with higher
clickthrough rates (CTRs) more often when you have multiple ads in the same
Ad Group. This feature can be managed at the campaign level."

It seems to me that a an Ad with a low number of impressions, but a high CTR
will cause and ad with a very higher number of impressions, but lower CTR to
be downplayed or maybe not shown at all. Picture 2 ad groups;

Ad # 1 had 100 impressions and 5 Clicks for a CTR of 5%
Ad # 2 had 10000 impressions and 100 Clicks for a CTR of 1%.

Under the 'Adwords Optimized" logic, Ad#1 is going to somehow start getting
more impressions than Ad#2.

If Ad#1 and Ad#2 have different keywords, it would seem to me that the low
impressions for Ad1 are because it's keywords are less popular. I don't see
how they can boost the impressions *significantly* if people just aren't
looking for those keywords.

A similar problem occurs on their criteria for disabling an ad based on too
low a CTR- I have had ads disabled that were generating very higfh clicks
(good for me and Google, I should think) but a low CTR.

I am tempted to shut off this "Optimized Adwords" feature - it sounds
counter-productive.

What am I missing in this logic?

Bob Kochem
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MinuteMan Systems - Project Management Software |
info (AT) minuteman-systems (DOT) com http://www.minuteman-systems.com/ |
PO Box 152, Belmont, MA 02478 USA (617)489-5639 |
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Its better than overture. With overture, if you bid on the term first and
someone bids the same as you, first movers advantage. With google, click
through rate rules. So if you create a better ad with a better message you
can move to the top and your price doesnt go up. Competition at its best.
"Bob Kochem" <r.kochem (AT) worldnet (DOT) att.net> wrote

Google has implmented a feature in Adwords that gets turned on by default,
and as I see it may be harmful.

From their website; "AdWords will automatically show ads with higher
clickthrough rates (CTRs) more often when you have multiple ads in the
same
Ad Group. This feature can be managed at the campaign level."

It seems to me that a an Ad with a low number of impressions, but a high
CTR
will cause and ad with a very higher number of impressions, but lower CTR
to
be downplayed or maybe not shown at all. Picture 2 ad groups;

Ad # 1 had 100 impressions and 5 Clicks for a CTR of 5%
Ad # 2 had 10000 impressions and 100 Clicks for a CTR of 1%.

Under the 'Adwords Optimized" logic, Ad#1 is going to somehow start
getting
more impressions than Ad#2.

If Ad#1 and Ad#2 have different keywords, it would seem to me that the low
impressions for Ad1 are because it's keywords are less popular. I don't
see
how they can boost the impressions *significantly* if people just aren't
looking for those keywords.

A similar problem occurs on their criteria for disabling an ad based on
too
low a CTR- I have had ads disabled that were generating very higfh clicks
(good for me and Google, I should think) but a low CTR.

I am tempted to shut off this "Optimized Adwords" feature - it sounds
counter-productive.

What am I missing in this logic?

Bob Kochem
.-----------------------------------------------------------------.
| MinuteMan Systems - Project Management Software |
| info (AT) minuteman-systems (DOT) com http://www.minuteman-systems.com/ |
| PO Box 152, Belmont, MA 02478 USA (617)489-5639 |
`-----------------------------------------------------------------'

In terms of what you are missing, without this feature your ads
are served equally amongst the number of ads you have in your
group.

If you have 3 ads then each of them get 33% of the impressions
for your campaign. It may be that of your ads, one of them is
horrible and gets very few clicks, but regardless you still get
an equal share of the impressions.

Under the new optimised system if one ad is shown to get a higher
CTR over time then Google will start to show that ad more
frequently. It may be the ad doesn't convert, but that's your
site's problem not Google's.

The ads will have identical keywords, the impressions will be
identical across the campaign, but assuming Google show your best
ads more often based on CTR it should mean that your cost will be
cheaper over time.

We like the feature, but you still have to track ROI.

Jim Banks
CEO
Web Diversity Limited
http://www.webdiversity.co.uk

On Wed, 03 Dec 2003 04:28:48 GMT, "Articus"
<artmccarty (AT) hotmail (DOT) com> wrote:

Its better than overture. With overture, if you bid on the term first and
someone bids the same as you, first movers advantage. With google, click
through rate rules. So if you create a better ad with a better message you
can move to the top and your price doesnt go up. Competition at its best.
"Bob Kochem" <r.kochem (AT) worldnet (DOT) att.net> wrote in message
news:7ebzb.20148$UG2.4171 (AT) nwrdny03 (DOT) gnilink.net...
Google has implmented a feature in Adwords that gets turned on by default,
and as I see it may be harmful.

From their website; "AdWords will automatically show ads with higher
clickthrough rates (CTRs) more often when you have multiple ads in the
same
Ad Group. This feature can be managed at the campaign level."

It seems to me that a an Ad with a low number of impressions, but a high
CTR
will cause and ad with a very higher number of impressions, but lower CTR
to
be downplayed or maybe not shown at all. Picture 2 ad groups;

Ad # 1 had 100 impressions and 5 Clicks for a CTR of 5%
Ad # 2 had 10000 impressions and 100 Clicks for a CTR of 1%.

Under the 'Adwords Optimized" logic, Ad#1 is going to somehow start
getting
more impressions than Ad#2.

If Ad#1 and Ad#2 have different keywords, it would seem to me that the low
impressions for Ad1 are because it's keywords are less popular. I don't
see
how they can boost the impressions *significantly* if people just aren't
looking for those keywords.

A similar problem occurs on their criteria for disabling an ad based on
too
low a CTR- I have had ads disabled that were generating very higfh clicks
(good for me and Google, I should think) but a low CTR.

I am tempted to shut off this "Optimized Adwords" feature - it sounds
counter-productive.

What am I missing in this logic?

Bob Kochem
.-----------------------------------------------------------------.
| MinuteMan Systems - Project Management Software |
| info (AT) minuteman-systems (DOT) com http://www.minuteman-systems.com/ |
| PO Box 152, Belmont, MA 02478 USA (617)489-5639 |
`-----------------------------------------------------------------'