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In a discussion on Webmaster World on Wednesday, Google’s AdWords advisor denied that the company uses information gathered from its conversion tracking and analytics data to determine bids for keywords.
The idea, from Google's perspective, is to focus minds on conversions, but the resultant increase in costs for some advertisers caused consternation in search engine marketing forums.
Google again introduced changes earlier this month to how Adwords evaluates landing page quality:
“We'll begin incorporating landing page quality into the Quality Score for your contextually-targeted ads, using the same evaluation process as we do for ads showing on Google.com and the search network. Advertisers who may be providing a poor experience on their site will notice that their traffic across the content network decreases as a result of this change.”
Again, this caused frustration in the forums, as advertisers saw their keyword costs rise once more.
The suspicion of many is that Google is using the introduction of the algorithm in order to raise the value of minimum bids, Andrew Goodman at Traffick says as much, and complains about the lack of transparency in Google’s method.
Google's Adwords advisor denied the use of data from analytics and conversion tracking in determining keyword bids:
"Because of persistant rumors and conjecture along these lines, I'd like to clarify that information from Google's conversion tracking and Google Analytics is not used in the calculation of ones minimum bid, nor otherwise incorporated in the calculation of CPC."
Winning the Bidding War on Google Adwords