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..................