Google Aims to Improve Estimates for Clicks, Costs, Positions in AdWords

    May 10, 2011
    Chris Crum

Google just announced that it had made an adjustment to the algorithm it uses to provide traffic estimates in AdWords. The change, the company says, should improve stats for estimated clicks, cost, and ad position.

This data can be seen in places like the Traffic Estimator and the AdWords Keyword Tool, as well as on the Keywords Tab in your AdWords account.

Google Looks to improve traffic estimates

While Google doesn’t share much in the way of how the algorithm has been adjusted, Dan Friedman writes on Google’s Inside AdWords blog, “One of the most common uses of traffic estimates is to evaluate potential keywords and decide whether you should add them to your account. Traffic estimates are also useful in determining if your bids and budgets are appropriate for these new keywords.”

“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,” he adds. “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.”

The change to the algorithm is currently live, and affects AdWords accounts all over the world.

In other AdWords-related news, Google is adding new targeting options that allow advertisers to target users of tablets beyond just the iPad. Be careful that you get the settings how you want them, because as this goes into effect, you may see costs rise, due to the increase in tablets being targeted.