The "History Factor" For Adwords

Discussion in 'Google AdWords' started by kjb1891, Oct 9, 2007.

  1. #1
    Hey everyone. I recently read a good blog post by Amit over at Super Affiliate Mindset where he talks about what he calls the "history factor" for Adwords. Here's the link:

    http://www.superaffiliatemindset.com/adwords-question-from-a-reader/

    What do all of you think about this? I've never read anything about this so called history factor before but it sounds interesting to say the least.

    Do you think that the history factor is set in certain increments such as 7 days, 30 days, 60 days, etc. So, every time you go beyond that time increment it will help increase your ad positioning? Or do you think that it could possibly be calculated relative to your competition?

    Also, what do you think Google calculates the history factor for? The campaign as a whole? Each text ad? Each keyword?
     
    kjb1891, Oct 9, 2007 IP
  2. CustardMite

    CustardMite Peon

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    To quote his argument for this:

    You’ve probably noticed that when you first launch a Google campaign, you don’t get a lot of traffic, however, once it’s been running for a while the traffic starts really kicking in

    I can't honestly say that I've seen this on any campaigns that I've ever run on search (and there have been many).

    HOWEVER, it is definitely true on the Content Network. I took over the management of a PPC campaign a few months back, and there was a single campaign for both the search and content networks. I moved the content network into a new campaign, and the traffic immediately jumped off a cliff. After 4 weeks, about 80% of it came back, but it's never returned to its original levels.

    So it seems clear to me that the age of the campaign affects the Content Network.

    On the other hand, I don't think that it does on the Search Network.

    As the article says, Google initially guesses your advert/keyword's relevance, and then adjusts it when it gets some actual history.

    So I feel that his formula:

    Ad position = (Bid price) x (CTR) x (history)

    is misleading. It's just

    Ad position = (Bid price) x (CTR)

    where the CTR is estimated initially.

    Of course, there are other factors that influence the quality score as he says...
     
    CustardMite, Oct 10, 2007 IP