Has anyone else (mainly the experienced users) noticed that when you start a new campaign that the keywords are positioned relatively high? Then following the first day with no changes to your campaign, the words drop a page or two. I went from page one to page five with zero changes (this was not during the most recent formula change).
In nearly all of the new accounts I create for clients, I have noticed they come out of the gate pretty hot and then settle down over time. I've always thought Google was trying to encourage (i.e. hook) new users.
I think it is a ploy to show advertisers the amount of traffic you can get on the first page. I have been working on PPC for a while and I have never seen it to the extent I have recently.
I think what you are finding is just a competitive market. Your competitors raise their bids to displace you.
That would not happen in one day. If I dropped 5 pages in 24 hours that would mean potentially 40 competitors upped their bids. That is not realistic.
Could it be a: your right about giving a higher position to show the potential of AdWords to new adverts or b: give you a high initial QS and then look at it again after you have had some traffic and therefore data to judge the correct scoring for your advert? Just two ideas not proof etc to back them up, I agree that the competition upping their game is a lost agreement
It's simply because you have no history so they anticipate a best case scenario. After a couple days google knows if you have a decent click through rate and has calculated your quality score. At this point they know if you deserve a good position or not. It's pretty simple when you get down to it. They aren't going to penalize you for being a new user.
That's assuming the keyword has no history w/Google. They use historical data in the initial QS as well...when it's available.
I think it has to do with the CTR. I went into a very high searched keyword with a narrow product (on purpose) and expected a low CTR and that is what I got.
I also think it has something to do with QS. It stays at the front, and google has the chance to test CTR and time spent on the site, and other factors. Then, they start adjusting the position depending on the QS of the keywords. I think it gives a good start for a new campaign/account.
Google wants to find ads that actually deliver... otherwise its free advertising. Coming out of the gate... Google is going to spray the ads everywhere and see what sticks. If there is a high clickrate then the ad will keep coming up, if not it is not going to be shown as much. As a webmaster and SEO it is my job to make sure the ROI of an ad budget to sales made is worth the sale... it's a game of finding the right ad with the right keywords. One mistake people make is they have one ad for all their keywords. You need to have different ads for different keywords in order to get the most out of each ad you are serving.