Google changes in AdWords algorithm: who benefits?

Google announced in the last week that the Adwords algorithms would be changed to improve its relevancy to users and advertisers. What this seems to mean is that the landing pages of ads will be scrutinized by Google algorithms, to improve the fit between what is being advertised and what the users is really looking for.

This seems all good to users and to honest advertisers. On the other hand, one disadvantage has being noted by some bidders: the price of some words have gone up very quickly, as reported by some people.

In the rush to adapt to the new rules, it seems that advertisers are bidding higher for the same words. Adword bid inflation has been noted to vary from 400% to 2000%. This, however, appears to be the fate for advertisers that don't provide good "return for click" for end users. What may at the end be good for the public in general.

Link, via Adwords blog

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