Upgrades to AdWords Quality Scoring
Posted: August 22nd, 2008
Google ushered in the use of Quality Scores in AdWords three years ago, with the intention of allowing more effective advertisements and higher quality websites to advertise more cheaply. At first, a strong focus was placed on getting better click through rates, as it was (and still is) a key factor in determining one’s Quality Score. As time went on, other factors like landing page load / response times were brought in, and are important in paying less for keywords in today’s PPC campaigns.
Three potential improvements were announced today regarding Quality Scores, and these changes are scheduled to be implemented in the coming weeks, depending on user feedback.
Accuracy
The first proposed improvement relates to accuracy. The old static per-keyword Quality Scores will be phased out and Quality Scores will be calculated as each search query is made on Google. This is intended to better match AdWords ads with searchers, improve relevancy to the searcher, and generate more qualified leads to the advertiser.
No More “Inactive for Search”
As Quality Scores are determined as each search query is made, keywords will no longer be marked “inactive for search.” Theoretically, each keyword will have a chance of showing up in the Google network, however, there won’t likely be much traffic to these keywords anyway.
First Page Bid
Also due to the “per-keyword” to “per-query” movement, “minimum bids” will be replaced by a more useful “first page bid” metric. As the name implies, the first page bid is essentially the amount required to get your ad listed on the first page of SERPs.
The Fallout
How will all these upgrades play out for search marketers? It has yet to be seen, although some speculate that average campaign prices will rise. The “first page bid” feature is an improvement over “minimum bids,” but a more robust system that includes second and third page listings would be more helpful. After all, second and third page listings are a good way of avoiding diminishing returns.

Thanks for this tips mate. really useful.
Quality scoring is important, but what really excites me is Google Ad Planner. It provides the ability to build advertising campaigns around a target market instead of by keywords.
I wrote about it on my blog today, and liked to it above.
The most troublesome change for the Quality Score calculated per search is geo-targeting. Adwords will boost Quality Scores for ads in the same geographic region as the consumer. Better Quality Scores mean higher ad positions.
As a consumer, I would imagine the appeal of the internet is being able to view products and services from outside your local area. Now Google is going to shut that down, and show ads only from your local area.