Two weeks ago, Google announced a change to their top ad positioning formula that has been met with some raised eyebrows. Google will continue to use ad quality and cost-per-click as a metric for placement, but has added changes when it comes to the top position. Google’s changes include taking into account an advertiser's maximum CPC, their competition, and stricter rules on the quality component for the top positions.

The hope from Google is that this should help produce better quality ads in the top position – even if there is no competition. Now an advertiser can’t take lack of competition for granted and will need to create a strong ad regardless. Google will still determine if an ad is strong enough to warrant the top position. Minimum pricing just means Google no longer needs a tight landscape to make this determination.

Ali Manning and Adam Heimlich from our New York office recently published a more detailed POV on Google's adjustment to top ad positioning. 

While Google dominates the US market share for Internet searches, they play second fiddle in China to Baidu.com, who reportedly controls over 60% of Internet searches. In a recent move, Google acquired a stake in Tianya.cn, a Chinese community website. In addition, Google has established a research center in Shanghai, and has recently won preliminary approval from Beijing for a license to provide news online. Baidu.com got an early jump on Google, receiving approval to be the first search engine allowed to provide news information back in January.

The Chinese government has strong controls on news and journalists, and routinely censors news that may be politically sensitive. In order for search engines to succeed in China, they must be willing to suppress sensitive material in search results and be willing to share their information with the Chinese government when called upon – which Google is complying with. In addition, Google is expanding its relationship with China.com.

Yahoo! is cooperating with officials to diffuse accusations that they allowed sensitive material into search results. In addition, Yahoo! is being sued by the World Organization for Human Rights for sharing information about its users with the Chinese government. The information has led to the arrests of writers and dissidents who are being tracked down after Yahoo! passed on e-mail and IP addresses to officials.

These recent moves have given a clear indication that Google is making a strong push to close the gap with Baidu.com and take a larger piece of the second largest market in the world.

David Chase and Martin Vitner provide an overview of the Panama launch in Europe in this feature article.

Would you like better understand the relationship between sites? Take a look at TouchGraph.

The Economist examines the competition that Google faces in Who's Afraid of Google?

Companies need to be careful when editing their Wikipedia listings.