Google just announced in their Adwords blog about there will be upcoming changes in their top ad placement formula. They say that advertisers are aiming to reach the top 3 placement in above the Google SERPs because those ads perform very well and get them a good ROI. The top placement ads get the high quality traffic an advertiser desires. Quality score is one of the important factor in determine the top placement which mean no one else can reach to the top without having a quality ad, this new formula gives more control to the advertisers on the top placement through increasing the quality of their ads for the visitors.

Google says right now the top placement is determined by the quality score along with the Cost-Per-Click (CPC) formula. The much improved formula would give more importance to quality score as well as the maximum CPC, So you not only should have a good quality score but also need to increase the price of your bid to remain on the top spot. So this gives more control for the advertisers to remain on the top. My views is that there would be big bid war among the advertisers to remain on the top which benefits Google with lot of money and the small advertisers would be pushed to the down spot.

With the increase control for advertisers the new formula of Google Adwords not only increases the quality for the top spot this also gives the users with a pool of top quality ads. This new formula is going to be effect within few weeks. So with the next few days you can see so many changes going on in the sponsored links when you make a Google search.