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According to the upcoming changes to Google Adwords, there will no longer be a minimum 0.5% CTR requirement to keep your keywords active. You can keep all your keywords active just by increasing the CPC (cost-per-click) to the amount suggested by the system. On the flipside, you can reduce your CPC if your keywords are performing well. There will be a new figure of merit called a “Quality Score” that will determine your CPC. In theory, this means that you can actually get a CPC of 1 cent if you have the maximum quality score.

I don’t know if this is true at this point. We’ll have to wait till these changes are implemented and test our keywords and ads to find out. It’ll be a great cost-savings for advertisers who are currently bidding the minimum 5 cents per click. I have quite a few campaigns with the minimum bid on keywords. If I can reducde the CPC to 1 cent, that will translate to a savings of 80% on my advertising costs.

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