If you have a lot of ads on your website, Google's new algorithm change will definitely punish you for it. I know it may be tempting to put ads in as many places as possible, especially Adsense because you want more clicks but Google is cracking down on sites that simply overdo it.
According to Google, the new search algorithm will search for sites with a good balance between good content and ads which could make your site drop a few places for it's keywords if you have overdone your ads. This algorithm change was made after many users and webmasters complained that Google favored sites with a low quality to ad ratio.
Google Engineer Matt Cutts also mentioned in the blog post that High Quality sites will be rewarded in order to encourage " a healthy web ecosystem"
"Google depends on the high-quality content created by wonderful websites around the world, and we do have a responsibility to encourage a healthy web ecosystem. Therefore, it is important for high-quality sites to be rewarded, and that’s exactly what this change does."
"So, we’re very excited about this new ranking improvement because we believe it’s a big step in the right direction of helping people find ever higher quality in our results. We’ve been tackling these issues for more than a year, and working on this specific change for the past few months. And we’re working on many more updates that we believe will substantially improve the quality of the pages in our results."Google has also increased "Ad Transparency"
When you look at it, Google is doing all of us a favor and increasing the quality of the browsing experience. You will no longer have to navigate through pages and pages of ads before you get to the content you are actually looking for.
The change will apparently only affect less than 1% of all global queries.The algorithm will devalue sites with low value ads.
If you are afraid of losing your precious rankings. Google suggest you do some spring cleaning on your site with tools like its Browser Size Tool and screen resolution emulators.
Reference: http://mashable.com/2012/01/20/google-reduces-ad-view/ (You should also check out the video on this page)
So do you think your site or someone else's site will be affected by this?? Let me know. Drop a few comments.