Google Adwords is soon going to make changes to their top ad placement formula on search engine result pages. According to Adwords, this change will put more emphasis on maximum CPC (Cost Per Click) bid than the advertisers actual CPC cost.

Within next few weeks Google Adwords () is improving the formula on how high quality ads will be placed in search results pages. This algorithm change may affect the maximum number of click and average cost per click.

For now, Google Adwords decides ads placement by analyzing the ads quality score and publishers actual bid on the ads. But in the new formula, Adwords will put importance on publishers max bid for cost per click which will give Google Adwords clients more control over their ads placement on search result pages.

With this new formula, instead of considering your actual CPC, we’ll consider your maximum CPC bid, which you control. This means that your ad’s eligibility to be promoted is no longer dependent on the bids of advertisers below you. Therefore, if you have a high quality ad, you now have more control to achieve a top position by increasing your maximum CPC.

By the way, Google Adwords will still consider ads quality score as a measurement.

Read the Google Adwords Official Announcement:
Improvement to the Top Ad Placement Formula