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Do Adwords algorithms balance performance?

Visitor ✭ ✭ ✭
# 1
Visitor ✭ ✭ ✭

Hi,

 

In the past, we have often observed that if we make any change in our account (structure, ads, keywords, bids, landing pages etc.) and if that results in SIGNIFICANT improvement in performance (say in CTR or conversion %), that jump in performance immediately gets moderated next day. It seems that the algorithms do a balancing act as far as performance metrics are concerned. We have observed this every time a positive change is made.

 

Has this been observed by others as well? Is there any logic in this balancing act?

 

Anumeh

 

 

1 Expert replyverified_user

Re: Do Adwords algorithms balance performance?

Top Contributor
# 2
Top Contributor

Hi, anumeh.

 

Can you be a bit more specific? What did you notice? Great CTR today and then back to the usual tomorrow? There's quite a number of factors that affect performance, but the system acting as a balacing mechanism is not at all familiar to me.

 

I did notice, for instance, a jump in QS, when my CTR was over a certain level, but then, as my CTR decreased in 2-3 hours, the keywords got back to their previous CTR. But other than that, no, I have not noticed any "quick compensation" after a better performance stint.

Calin Sandici, AdWords Top Contributor | Find me on: Google+ | Twitter | LinkedIn | myBlog
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Re: Do Adwords algorithms balance performance?

Explorer ✭ ✭ ☆
# 3
Explorer ✭ ✭ ☆

I sometimes do experience the same. More clicks more views better CTR  just after a major change, but it then levels  out within a day or two.

 

I always had the idea it is a combination of Google trying to match up, and renewed/gained interest from visitors (and competion)

 

Re: Do Adwords algorithms balance performance?

Follower ✭ ✭ ☆
# 4
Follower ✭ ✭ ☆

Hi Anumeh, ys I've noticed something very similar after I make changes. I did wonder if it could be due to the algorithm adjusting to an increased ad rank - ie. an ad's performance improves -> ad position improves -> QS adjusts down as you're now the lower performing of a higher ad position... and so on.

 

Just a wild guess. More experienced people here may have a better idea.

Re: Do Adwords algorithms balance performance?

[ Edited ]
Explorer ✭ ☆ ☆
# 5
Explorer ✭ ☆ ☆

Hello everybody,

 

This is a sympthom seen in many other processes, not only in Adwords. I don't have any doubt that any of you did not see it, or had the the same feeling.

 

The problem is in the way you interpret statistics. You have to wait until you get a statistically significant number of impressions to jump to a conclusion. If you jump to a conclusion fast, then the conclusion has a vrey high chance to be affected by luck. If you do experiments regularly, then the number of cases where you have luck at the begining increases. As a result you start getting a feeling that somebody is messing with the results. What you need to do is - avoid jumping fast to a conclusion.

 

Also, there is another side of the story. It's related to the factors that affect the performance. In Adwords there are a lot, some of them are:

 

 - exact location of the user

 - time of the day

 - language

 - background of the person that visits your website

 - trustworthiness of the website

 

Usually you need about a few hundred of tries to get a statistically significant conclusions in a system where there are only 2 variables. When you have more variables, like in Adwords, you have to do a lot more tries, because every variable has something to say in the final result.