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Google Updates AdWords Traffic Estimates Algorithm

Posted by: formicmediauser

In the ever-changing world known as Google products and services, Google has announced yet another algorithm update.  However, this time around it isn’t Panda 3.0 – the update doesn’t even apply to search.  The newest update has been applied to the traffic estimates you see in AdWords.  According to Dan Friedman from the Inside AdWords Team:

“Today we’re announcing an update to the algorithm behind the traffic estimates you see in AdWords. As a result of our updates, we hope to provide you with better statistics for estimated clicks, cost, and ad position. This change is effective now and affects all AdWords accounts globally.”

Nothing exciting has been done to update the actual interface, just the behind the scenes interpolation.  One of the primary differences I first noticed was that you are now required to enter a number in the “Max CPC $” field illustrated below:

Other than a keyword and a max CPC you are not required to enter any other information in order to get an estimate for the global monthly searches, local monthly searches, estimated average CPC, estimated ad position, estimated daily clicks, estimated daily cost, competition or local search trends.

However, the biggest benefit of the updated algorithm is the fact that you are able to more accurately estimate traffic and bid structure when you are building your campaign.  More info from Dan and the AdWords team:

“In order to determine if you’re setting an appropriate target bid, try entering a few different values in the Max CPC field the next time you use the Traffic Estimator. Look at how these different bids affect your statistics, and then decide which bid gives you the best return on investment. You can use the same process for trying out new budgets.”

So have at it, test out the new algorithm to refine your bidding & keyword strategy and better optimize your campaign performance.

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