QualityScore, Ad Position and CPC: What and how they all are connected together
Do you wonder how Google Quality score work?
How about the relationship between QS, ad position, and cost per click?
It’s all explained in this short video by Google’s Chief Economist
Let me summarize it for you so you don’t have to watch the whole video again in case you forgot
What determines your Quality Score:
- CTR (Click Through Rate) is the biggest component… if your ad doesn’t get click Google won’t make money.
- Relevancy between the keyword and ad copy
- Landing page quality:
- Relevant content
- Original content
- Easy navigation which consists of quick: load time, no pop up, pop unders
- Transparent of the nature of the business
You can watch it in minute 2:31
What is Ad Rank and how it determines your Ad position?
Here’s the formula for Ad Rank:
Max bid x quality score = ad rank
Example:
- Max bid x quality score = ad rank
- $4 x 1 = 4 <== The ad won't even get shown up due to bad quality score
- $3 x 3 = 9 <== Ad position 2
- $2 x 6 = 12 <== Ad position 1
- $1 x 8 = 8 <== Ad position 3
You can learn it in more detail at minute 4:17
Determining the Cost Per Click (CPC)
It’s rather complicated to explain it here, better watch it yourself.. he’ll explain it better and with example, just go to the minute 5:29
Leon @ October 12, 2009
Succinct and tremendously helpful. Your summary is the best way I have seen of presenting video information to people who primarily like to read.
Thanks Guy!
Since it is our full time job to be on top of SEM world, we’re constantly digesting tons of educational material like this one.
I’ll try my best to share useful findings.
Big help for those who need Google simplified.
Thank you
Great video, thanks for sharing! We learn new things about PPC every day and it seems like things change so fast in SEM world that it’s hard to keep up.