How many of you were/are aware that google is in the process of rolling out a change in the formula which determines top spots placements for advertisers. The news is relatively old, being announced on August 2007 and the changes coming into place from October 2007 but is probably one of the most important changes made by Google in 2007.
Current formula is based purely on Quality Scoreand takes into account the actual CPC. Goggle however believed that this can be refined even more and should be considering that under the current equation, an advertisers placement depends to a large degree on the bidding characteristics of the advertisers below them, a factor not in control for the advertiser gunning for the top spot.
The change will be to take into account maximum CPC rather than actual, which allows for greater control towards this objective. This is also expected to increase the overall quality of the top ad’s for the users and give Google a larger pool to choose from.