Adwords Secret that will save you money

Adwords Secret You Need To Know To
Save Money

You need to know this adwords secret that will save you money if you are spending money doing Google Internet advertising.

Saving money makes this secret a secret that is worth knowing and knowing well. 

It has to do with the Quality Score that is attached to your Google Ad or Bing Ad.  The better the score the less you pay. Understanding the adwords secret regarding Quality Score is like money in the bank.  To understand how the Quality Score can save you money you must first understand the Google Adword or Bing Adword Bid Process

The Google Adwords Bid Process

How Google calculates what an ad costs is an auction process.  Basically you bid for a particular ad placement (how high up the list the ad sits) and your bid is how much you are willing to pay every time a visitor clicks on your ad.  Here is how it works.  As an advertiser you set a maximum bid (price) that you are willing to pay for a click. But what you actually pay, is equal to the bid of the advertiser below you.  For example:

                                    Max Bid          Actual Price Paid        Ad Position

Advertiser #1              $4                    $3                                1

Advertiser #2              $3                    $2                                2

Advertiser #3              $2                    $1                                3

Advertiser #4              $1                    –                                   Ad not displayed

How Quality Scores Impact Ad Placement

When Google introduced the concept of a Quality Score to the bid process they also brought in the idea of an Ad Rank.  The Max Bid times the Quality Score equals the Ad Rank and the Ad Rank determines the Ad Position.  The Highest Ad Rank = The Highest Ad Position.  This means that you can get a better position than your competitor while paying less if you have a better Quality Score.

                                    Max Bid          Quality Score  Ad Rank          Ad Placement

Advertiser #1              $4                    x  1                  =  4                  Not displayed

Advertiser #2              $3                    x  3                  =  9                  2

Advertiser #3              $2                    x  6                  =  12                1

Advertiser #4              $1                    x  8                  =  8                  3

This means that in the old Pre-Quality Score world Advertiser #3 held position number 3 and today with the high Quality Score how hold position #1 without having to increase the bid.  But the impact of the Quality Score is even bigger than that.

How Quality Score Effects Actual Cost Per Click

Before the creation of Quality Scores the cost that an advertiser paid was based solely on the bid process.  Now the calculation is a bit more challenging.  Let’s assume that we have 3 advertisers all-willing to bid $4 per click and all have different Quality Scores.

Max Bid          x  Quality Score          =  Ad Rank

Advertiser #1              $4                                8                                  32

Advertiser #2              $4                                6                                  24

Advertiser #3              $4                                3                                  12

Cost per click equation for Advertiser #1

Cost per click = (B2xQ2) / Q1

Where

B2= Advertiser #2 Max Bid

Q2= Advertiser #2 Quality Score

Q1 = Advertiser #1 Quality Score

Therefore

Cost per click = ($4×6)/8=$24/8+$3

Pre Quality Score Advertiser #1 would have paid $4 for position #1 they are now paying $3 for position #1

How To Increase Your Quality Score

What Are The 3 Components to Google Quality Score Calculation?

1. Click Through Rate (CTR) – The Most Important Component of Google Quality Score Calculation

The more clicks you get the higher your Quality Score.  Google says this as allowing users to vote thru clicks to help them decide what ads best match a search inquiry.  I think about it differently.  Google only makes money if a visitor clicks on an ad. 

So Google likes to shows the ads that get the most clicks.  This means that, since you need clicks to improve your Quality Score, new ads often have to start their campaigns with higher maximum bids.  As they gain clicks, and improve the Quality Score the max bid can be reduced.  So keep an eye on your Quality Score and adjust your bids accordingly.

2. Relevancy – Second Most Important Component of Google Quality Score Calculation

Relevancy of the keyword to the search query as well along with ad text is important to Google.  They determine relevancy by analyzing language and context of the ads and compare them to the landing pages to determine how well it relates to the search query, therefore the likely searcher intent.

3. Landing Page Quality – Third Most Important Component of Google Quality Score Calculation

An ad is only useful to a searcher if the landing page helps them to find the product or information they are looking for.  A high quality landing page should have original and relevant content related to the search query, fast load time, be easy to navigate, and be transparent about the nature of the advertisers business and how they plan on using site visitors information.

How To Save Money Using This Adwords Secret

So the key to using this Adwords Secret to saving money is the watch your ad score and look for opportunities to reduce your maximum bid.

As your Quality Score rises you can reduce what you need to bid to get the ad placement that you are looking for that is the Adwords Secret to saving money.

How To Find Your Quality Score

You can find your Quality Score by looking within your Keywords tab in your Google Adwords account. There are a couple ways to check your Quality Score.

Run a keyword diagnosis:

Adwords Secret

  1. Click the Campaigns tab at the top.
  2. Select the Keywords tab.
  3. Click the white speech bubble  next to any keyword’s status to see details about that keyword’s Quality Score. You’ll be able to see ratings for expected click through ratead relevance, and landing page experience.

A better way to see your Quality Score is to enable the Qual. score column:

Adwords Secret

  1. Click the Campaigns tab at the top.
  2. Select the Keywords tab.
  3. Look for the Qual. score column in the statistics table. If you don’t see this column in your table, you can add this column by doing the following:

Adwords Secret

 

  • Click the Columns drop-down menu in the toolbar above the statistics table.
  • Select Customize columns.
  • Select Attributes.
  • Click Add next to Qual. score.
  • Click Save.

Using This Adwords Secret To Save Money

In order to save money using this Adwords secret in your Internet advertising you will want to watch your ad quality score and adjust your bids over time.  Also work on your ads to ensure they are relevant and that the language of the ad matches the search intent.  You will also need to review your landing page to ensure your ad is pointing to a well-designed landing page.