Two weeks ago, we posted about an upcoming improvement to the formula used to determine which ads are placed in the top spots above Google search results. The change offers advertisers more control over when their ads achieve top placement, while also increasing the quality of our ad results for users. Today, we wanted to let you know that the improved formula is now in effect.

To recap, the key change to the formula is how we consider price. Like the formula used for ranking ads alongside Google search results, the top ad placement formula now considers an ad's maximum CPC. Previously, the formula for top placement considered an ad's actual CPC. Since actual CPC is determined, in part, by the bidding behavior of the advertisers below you, your ad’s chance of being promoted to a top spot could have been constrained by a factor you couldn't influence.

As always, the top ad placement formula will weight Quality Score much more heavily in comparison to maximum CPC, which means that the quality of an ad remains the greatest factor in determining an ad's eligibility for top placement. In other words, an ad with a low quality score but high maximum CPC still cannot achieve top placement.

Beginning today, the actual CPC you pay for an ad in a top spot will continue to be determined by the auction, but subject to a minimum price. The minimum price is based on the quality of your ad and is the minimum amount required for your ad to achieve top placement above Google search results. As always, your actual CPC will be discounted and the higher your ad’s quality, the less you will pay.

Since announcing this improvement to the top ad placement formula, we've received lots of questions from advertisers who are curious about how their accounts may be affected. Advertisers with ads in or near a top spot may begin to see a change in the average number of clicks these ads receive, and also in their CPCs. The degree to which your clicks and CPCs may be impacted will depend on a number of factors, so it's difficult to say today how much of a difference you can expect to see. Therefore, rather than making adjustments now based on assumptions, you may want to monitor your account as-is for the next few days or weeks to see how much of a true impact the improved formula will have.

If, on the other hand, you are thinking about making adjustments now, keep the following in mind:

* Review your account for maximum CPCs that are higher than the maximum amount you're willing to pay.
* Optimize your accounts to keep your costs down and your performance high. You can request a free campaign optimization from our support team here : https://adwords.google.com/support/bin/request.py?optform=1&ctx=faq&hl=en_US

Source: Official Blog of Google Adwords

Microsoft and Yahoo! have signed a pact with the Chinese government that "encourages" the big name web players to record the identities of bloggers and censor content. So says Reporters Without Borders, an organization that fights for journalistic rights across the globe.

The French advocacy group reports that at least 20 blogging services, including Yahoo!.cn and MSN.cn, have agreed to the new "self-discipline pact" laid down by the Internet Society of China, a spin-off from the Information Industry Ministry. Under the pact, the services are encouraged to store the real names and contact details of Chinese bloggers and delete "illegal and bad" information from user comments.
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The pact doesn't require the services to register bloggers under their real names, as was previously proposed, but Reporters Without Borders is adamant that the agreement will significantly undermine free speech. "This decision will have grave consequences for the Chinese blogosphere and marks the end of anonymous blogging," the organization said. "A new wave of censorship and repression seems imminent."

The worry is that the government will now have the power to finger Chinese bloggers and punish them for material it doesn't approve of. "The Chinese government has yet again forced Internet sector companies to cooperate on sensitive issues - in this case, blogger registration and blog content," Reporters Without Borders said. "As they already did with website hosting services, the authorities have given themselves the means to identify those posting 'subversive' content by imposing a self-discipline pact."

This is a particularly sensitive issue for Yahoo! The company is facing a US lawsuit over journalist Shi Tao, who was jailed after the company delivered information about his web doings to the Chinese government, and the case has sparked an investigation in the US Senate, following claims that Yahoo! tried to cover-up its involvement in the jailing.

When we asked Yahoo! about its new pact with the Internet Society of China, it referred us to a company called Alibaba, which "manages" Yahoo!'s China arm. We contacted Alibaba as well, but the company didn't immediately respond.

Initially, we didn't hear back from Microsoft either, but the company told The Los Angeles Times that it would not ask bloggers to reveal their identities. "The document makes some recommendations that Microsoft does not support," said Adam Sohn, director of Microsoft's online services group. "We will not implement real-name registration for blogging in our Windows Live Spaces service." Which makes you wonder why the company has agreed to sign the pact.

Source: theregister.co.uk