Google AdWords - Does The Highest Bidder Win?

Google AdWords provides each of your keyword phrases within your accounts a unique ‘quality score’.

This quality score is assigned to each keyword phrase and is calculated by a number of deciding factors including:

• your keywords phrase
• the bid amounts (cost per click)
• the relevancy to the ad group and if it is aligned to a users search.

The quality score for each of you keywords can be viewed by selecting customise columns on your relevant Google AdWords account. Select quality score from the drop down menu, example below.

The quality score is important as according to Google, it actively influences and determines your Ads position on Google's search networks. Therefore, it makes sense to consider the quality score guidelines from Google and follow them accordingly as the higher your score, the more prominent your ad position will be.

This is an interesting concept that has been introduced by Google and logically it makes sense. Ads with a good quality score along with other ‘relevant’ ads will appear on Google and its search partner network that are clearly attributed to what the searcher is looking for. Pay Per Click ads that are the most relevant will tend to achieve a higher position and be clicked on more often as a result of this initiative from Google.

Quality Score Criteria
Google AdWords uses a number of criteria to assign your quality score the main components of quality score are listed below (provided by Google AdWords) for information.

For calculating a keyword's minimum bid:

• The keyword's click-through rate (CTR) on Google; CTR on the Google Network is not considered
• The relevance of the keyword to its ad group
• The quality of your landing page
  

For calculating a keyword-targeted ad's position on a search result page:

• The matched keyword's CTR on Google; CTR on the Google Network is not considered
• The relevance of the keyword and ad to the search query

For calculating a keyword-targeted ad's eligibility to appear on a particular content site, as well as the ad's position on that site:

• The ad's past performance on this and similar sites
• The quality of your landing page

For determining if a site-targeted ad will appear on a particular site:

• The quality of your landing page
  

Google AdWords will use this information to position your ads accordingly. So with this information in mind, its not just about being the highest bidder any longer. it is about doing a little homework to ensure that your keyword phrases, adverts and landing pages are all relevant to the product or service you are trying to promote to your consumer base.

Or is it?

Google AdWords Quality Score - Improvement to the Top Ad Placement Formula
To confuse us all a little further, Google will be changing and in theory improving how ‘high quality’ ads are picked for the top position in the sponsored search results. These changes will take place in a few week time and they are designed to improve the ‘quality’ of ads even further and to provide us with more control in our attempts to achieve the top positions.

Much of the criteria we have already mentioned will remain; however, Google will introduce new 'formula' that will look at ‘price’ i.e. your actual Cost Per Click. Google will now consider your maximum per click bid which you set at the outset of your campaign i.e. Information From Google :

Actual CPC is determined, in part, by the bidding behavior of the advertisers below you. This means that your ad’s chance of being promoted to a top spot could be constrained by a factor you cannot influence. By considering your ad’s maximum CPC, a value you set, you will have more control over achieving top ad placement

Therefore, in theory, according to Google, if you have a quality written advert and increase your maximum Cost Per Click, you will have more control in achieving the top positions for desired key word phrases. However, you will only pay the minimum price and not you’re maximum price for these top spots.

Sounds a little to good to be true if you ask me? I still think that the high bidders out there and the firms with a little more money than you or i will still rank the highest. Quality Scores and ads are all very well but Google is a business at the end of the day and will want its pound of flesh!

Maybe this is just the cynic in me but hey, hopefully i will be wrong. It will be interesting to see how this pans out. Calling all High Bidders..................

Ten Secrets for Pay Per Click Success

Have you been frustrated by the performance of your pay per click campaigns? Here are ten tips to consider to get real results – cutting down unnecessary costs and still reaching your target audience.

1. Consider ALL popular search engines. Yes, Google is by far the most popular in the UK but because of this it is the most competitive. Yahoo and MSN still have their share of UK internet users and are less competitive. Give these a try too.
2. Consider regional advertising rather than national for Google. If you have a product that will appeal to specific regions of the country or if you have a very limited budget then select only one town or county. Your cost per click will be much lower.
3. Include the relevant keywords in your ads. Make sure your ads closely match what the searcher is looking for by creating targeted ad groups. Yes, Google looks at the amount you are willing to pay for top placement, but it also looks at quality. An advertiser can pay less and still get to the top position just because their ad more closely matches what the searcher is looking for.
4. Analyse. Analyse. Closely monitor pay per click campaigns using the free reporting tools available within Google Adsense, MSN, and Yahoo. Also consider an analytics package such as Google Analytics so that you can track which campaigns are generating sales.
5. Choose keywords carefully. Consider choosing the less competitive keyword phrases that really describe your product. There are plenty of free keyword tools out there so take advantage of them.
6. Use appropriate landing pages, rather than the home page. You want to give the potential customer the product or service they want immediately, rather than make them search around your website.
7. Use the advanced tools provided by Google including phrase match, exact match, and negative keywords to eliminate unnecessary clicks. There are excellent online tutorials available if you are unfamiliar with these tools.
8. Have a unique selling point? Display it in your listing to ensure that you stand out over your competitors. Give your customers a reason to click on your ad instead of the others. However, be careful about lying or making grandiose statements, as customers won’t buy if you make promises you can’t keep.
9. Tweak. Tweak. Tweak. Analyse your reports and try some the following:
   1. change the ads that aren’t performing
   2. Remove keywords that are generating traffic, but not sales.
   3. Try a few new keywords.
   4. Ensure that you keep a record of any changes and their impact
10. Focus your campaign. If you have hundreds of products concentrate your pay per click marketing on just a few products rather than adopting a blanket approach. A small campaign is much easier to manage at the start.