Most Important Tip on AdWords' New Top Placement Formula

The key change to the new AdWords' top placement formula is how Google considers price. Like the formula used for ranking ads alongside Google search results, the top ad placement formula now considers an ad's maximum CPC.

Beginning 22/08/2007, the actual CPC you pay for an ad in a top spot will continue to be determined by the auction, but subject to a minimum price. The minimum price is based on the quality of your ad and is the minimum amount required for your ad to achieve top placement above Google search results. As always, your actual CPC will be discounted and the higher your ad’s quality, the less you will pay.

Here is the most important tip to keep your costs down and your performance high:

Review your account for maximum CPCs that are higher than the maximum amount you're willing to pay.

- All according to official Google AdWords blog. Read more at Inside AdWords: Improved top ad placement formula now in effect.