From Search Engine Land -
In the upcoming weeks, Google will be releasing an updated algorithm to determine the ads that are displayed in the top ad spot, above the organic search results.
The updated algorithm will continue to use the quality and cost-per-click (CPC) figure but will be slightly tweaked for that top ad location. Now, instead of using the actual CPC, Google will use the advertiser’s maximum CPC, in the overall equation. In addition, Google will be applying a stricter threshold on the quality component for the top ad positions.
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