Google's hybrid auction gives brands a huge discount on top positions. Starting later this month, MSN's, Ask Jeeves', and LookSmart's PPC (define) keyword auctions will all use a hybrid system that rewards brands and compelling, relevant creative. The brand discount allows marketers to reach a higher position at a lower bid.

Why the discount? Searchers like to click on ads that are familiar, relevant, and compelling. This discount has existed for years within Google's AdWords system but has become more pronounced, especially now that the new Quality Score system is part of the method of calculating AdRank within AdWords. Quality Score takes into account factors beyond historical CTR (define) when calculating the predicted CTR for a particular ad in a specific situation (e.g., match type, geography, length of search query, etc.). One factor that seems to influence predicted CTR, regardless of position, is a brand term in the ad copy or branded domain.

Find out more about PPC search engines (including Google Adwords) ad ranking systems at http://www.clickz.com/experts/search/strat/print.php/3556031.