Adding to the increasing complexity of the AdWords “Quality Score” algorithm, Google has announced that page loading times will soon become a key factor.

The intention is that sites runing advert-heavy pages will be penalised in an effort to improve the “user experience”. Google claims conversion rates are lower when page loading times are poor, as users abandon the site, a claim supported by many frustrated browsers.

Losers

Flash Sites and Image-Heavy Websites - as Flash sites tend to require more image requests from the server than a typical html site, they may be penalised under the new calculations.

Poorly Hosted Websites - the jury is still out on whether cheaper hosting packages result in slower server responses, but inferior hardware undoubtedly takes its toll.

Winners

Text-Only Sites - we might see retailers using incredibly simple text-only landing pages (or maybe defaulting to the low-graphics accessibility pages?).

Google have not (and will not) release details of how much effect loading times will have on the quality score, for all we know it could be minimal, but Google are generally very commited to providing the best search results for their users. There are several conspiracy theories and there is no doubt that any changes will benefit Google’s profit margins but ultimately those who abide by the rules will be rewarded.

As more and more businesses realise the potential of advertising via search engines, the “bidding war” on search terms is hotting up.

Increasing bids on paid advertising on Google, MSN and Yahoo may increase your position in the listings, but with systems such as AdWords “Quality Score”, the bid is only the tip of the iceberg.

Quality Score ensures that advertisers with a well-considered search term list, relevant ad text and a good history of CTR (Click Through Rate) are rewarded over those that simply bid higher and higher.

Many businesses attempt to run their own Pay Per Click campaigns, selecting what they believe to be the most relevant search terms for their industry, then set a budget and aim to bid for the “top spots” on each search engine.

Without conducting the relevant search term research, optimising the campaign and then monitoring ad performance along with click through rates, the Quality Score will suffer.

The post-click analysis (utilising tracking software to link search terms to a goal such as an enquiry form or purchase receipt page) also performs a vital role, ensuring you bid on the correct search terms, have well-targetted adverts and are sending searchers to the most relevant page on your website (the landing page).

Additional attention to detail when running a Pay Per Click campaign is more essential now then ever before!

The media has been inundated over the last few days with details of the proposed Yahoo buy-out by Microsoft for £23bn.

Google is said to be concerned and wants regulators to oversee the deal, as it would allow one company too much control over email and instant messaging accounts.

Over the last few years, both MSN and Yahoo have failed to make any major dents in Google AdWords monopoly of the search engine market.

Google still represent in excess of 70% of searches made via the internet, with MSN and Yahoo fluctuating between 2% and 10% over the last 5 years.

Various shake-ups and “aggressive restructures” have failed to improve the situation at Yahoo and the final quarter of 2007 saw a 27% drop in profits.

This is a potentially exciting time for pay per click marketing as ROI (return on investment) and customer service from MSN and Yahoo have been well documented as far inferior to Google.

The merger/acquisition may finally create a search engine platform that can challenge Google, hopefully providing a few incentives for advertisers to reassess the distribution of their search engine marketing budgets.

LandingNet await the outcome with baited breath!