Hello TatM, DKI help you getting the more no. of clicks...
DKI help you getting the more no. of clicks for your ads so this improve the CTR of keywords and ad texts. Thus this will help you in improving the QS of keywords as well as ad group, it can take some time to improve the QS of keywords.
But as you mentioed your quality score goes down, I'll suggest you check the keywords whose QS went down, how relevant they are, what CTR of these keywords have. You can use the keyword diagnosis tool to check the probelm with keywords. If you made changes in landing page this can also effect the QS of keywords.
The keyword diagnosis tool should work for all keywords, including those that do not have any apparent problems. I think Dinesh was simply suggesting one method for you to explore why your QS's dropped.
Were there uniform drops in QS? Did you replace exiting ads with DKI ads? Did you edit existing ads to use DKI? Did you make any other recent changes to your account other than adding in new ads?
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This may not be the reason, or at least the only reason,...
This may not be the reason, or at least the only reason, but...
I do belive that DKI headlines only work if the QS of the matched keyword to the SQ, is above a 4. When the QS is too low, the static version of the DKI headline will show.
The bigger issue - as Dinesh and Tom point out, is the dynamic relationship of the keyword/SQ, the ad, and the intent of the individual user. When the DKI headline shows, CTR may improve (QS for that impression as well), but if the makjority of impressions occur in instances where the static version of the headline is shown, and that ad has a far lower CTR, then over all QS may go down. The more keywords, in broader match types, with potentially static or dynamic ad varibles you have to contend with, the more difficult it is to extrapolate data about the individual users interaction with those variables. In short - DKI ads may, or may not be the primary reason why this has occured. DKI ads do add another variable that you have to contend with.
In my experience, I have learned to try and be very careful how, and where I use DKI ads. My new policy is to not use DKI ads for anything other than exact match terms, with a QS of 4 or higher. For what it's worth.