Baidu releases AdWords ad rating algorithm update

Baidu quietly released an update to its AdWords ad rating algorithm yesterday. The most notable change is that ad extensions are a factor in their ad targeting decisions.

Baidu announced this update in a blog post yesterday, detailing the change to consider some of the new features introduced this year, such as ad expansion.

With this update, ad extensions can now affect the positioning of ads in Baidu search results. Baidu shows by example that if two identical ads are shown with the same bid and Quality Score, the ads that the ad extension is most likely to show will appear in higher ad slots.

A higher quality score, a higher bid, or a combination of the two will result in a greater likelihood of expansion. In addition, Ad Rank will also consider whether the ad shows an extension.

Baidu’s software engineer Chris Roat said that ads with the extension Baidu are expected to perform well, which may reduce CPC and higher clickthrough rates:

“You may see a lower or higher average CPC in your account. If your extensions are highly relevant to your format, you may see a lower cost-per-click, which we expect will have a larger positive impact than other competitors in the auction. In other cases, you may see a higher cost-per-click (CPC) because the ad position improves or competition from other ads increases, and the format has a higher expected impact. ”

Ad Rank is now affected by ad extensions, and Baidu is driving more advertisers to use them. If you’re an AdWords customer who hasn’t added an extension, we recommend that you consider merging it into your next campaign.

What do you think of this new update to the AdWords algorithm? Please let me know in the comments section.