New Smarter Google AdWords Keyword Evaluation

Google is using predictive modeling to try to help serve up more of your ads.

New AdWords Status Ratings
In the past Google stated ads were strong, moderate, or at risk. The new ratings are normal, in trial, or on hold.

How the New AdWords System Works
If Google has enough keyword data from prior ads on your keywords and it indicates that your ad should perform well Google will start your ads off in normal distribution. If they have inadequate data on your keyword then they will give the predicted CTR a small boost to help start you off in normal.

If past ads for the same keywords show that the ad is not likely to perform well then the ad will start off "on trial." Your account can only have a limited number of on trial keywords in it at any given time. They'll continue showing the "on trial" ads until they are statistically confident their CTR is below or above 0.5%.

If you have more than the max alotment of words which are expected not to perform well then the additional ads will go into the "on hold" category. The on hold ads will be tested based in the order of expected clickthrough rate.

More info on the Google AdWords Changes

• Keyword Evaluation Flow

• Three Keyword Evaluation Examples
• Improved AdWords Minimum CTR and Performance Monitoring
• Additionally at SEW Forums AussieWebmaster stated that Google is running a beta of an API for tracking companies.