The idea that bids are the mechanism, by which you determine where and when your ads appear, and how much you spend for the clicks you receive, is central to the core conception most people have about PPC advertising. But that is not the true scenario of how the paid search works.
On Google the placement and position of your ads, and the price you pay per click, is not directly or solely determined by your bids. Instead, bids play a role alongside a metric called Quality Score. The importance of this metric has gained clarity and prominence over the past years. Quality Score helps ensure that only the most relevant ads appear to users.
Google says, “The AdWords system calculates a ‘Quality Score’ for each of your keywords. It looks at a variety of factors to measure how relevant your keyword is to your ad text and to a user’s search query. A keyword’s Quality Score updates frequently and is closely related to its performance. In general, a high Quality Score means that your keyword will trigger ads in a higher position and at a lower cost-per-click (CPC).”
Whenever your keyword matches search query, your Quality score is calculated. Hence it is very important to choose good keywords for your PPC Campaign. Quality Score is used in several different ways. Some of them are listed below:-
Influences keywords’ actual CPCs.
Estimates the first page bids that you see in your account.
Determine whether keyword would be included in ad auction or not.
Affects rankings of ad.
In general, the higher your Quality Score, the lower your costs and the better your ad position.
Quality Score is provided on a scale of 1 to 10, with 1 representing a poor Quality Score, and 10 representing a Great Quality Score; average Quality Score is 7.
1 – 4: extremely poor (and sometimes punitive). Results in very low impressions and high CPCs.
5 – 6: below average and sub-optimal. Keywords in this range will often drop to a very low position or require a very high bid.
8 – 9: very good. Generally, scores in this range provide a clear advantage in higher impressions and lower costs.
10: a great Quality Score that drives up position and saves money on every click.
Google uses a formula based to decide where and when an Ad should be displayed. In this formula, it considers Bid and Quality score
Actual CPC is calculated by dividing Ad rank to beat by Quality Score plus a small amount to make calculations easy. Now all this means that the higher the Quality Score you achieve, the lower the price you will pay-per-click.
Well, following are the factors considered while calculating Quality Score :-
Historical CTR of keyword and matched ad on Google (CTR of keyword and ad of Google Network is not considered for Google.)
Account history (CTR of all the ads and keywords in your account are considered for this)
3. CTR of Display URL Quality of landing page Relevance of keywords with the ad in the ad group. Relevance of keywords and the matched ad to the search query Your account’s performance in the geographical region where the ad will be shown. There remains much speculation on how these different factors are actually applied and how their use varies in different situations.
Tips to increase Quality Score:-
Organize keywords in Ad Groups for Relevance. Test Ad copy to improve CTR. Use Campaign Optimizer for suggestions on overall campaign. Use URLs that perform good alternatively. Pause or Delete the under-performing campaigns. Keep an eye on Quality Score. Consider Geographical Factors and analyze them. Feel free to put share your views and ideas. If you have liked this post, do leave a comment. 🙂