Microsoft adCenter releases new ad ranking algorithm

[mandy]

As part of the Live Search 2.0 launch, we have made changes to the adCenter quality-based ranking system – the formula that we use to calculate which ads appear in the mainline (the ads that appear above algorithmic search results). Prior to this change, the algorithm used to determine when ads could appear in the mainline was more rigid. With these changes, the marketplace is now more dynamic, and any ad with a Quality Based Ranking above the mainline threshold may appear in the mainline.

This change represents a win-win for advertisers and searchers; in addition to giving you more control over placement, searchers are getting better quality ads in the mainline.

As an advertiser, you can control whether your ads appear in the mainline by increasing either the Click Through Rate or the Max Bid. You can think of this as a quality threshold that you must cross in order to appear in the mainline. With this change, we expect most of your ads will continue to perform as they have in the past.  However, there may be some cases where:

    * You could see your ads move in or out of the mainline depending on your CTR and set Max Bid
    * You may need to bid more to maintain mainline positions
    * You may see ads move up into the mainline without bidding more
    * For ads remaining in the mainline, your actual CPC may increase

full announcement: http://adcenterblog.spaces.live.com/Blog...!542.entry