Jul 05
Quality Score is Google’s rating of the quality and relevance of both your keywords and PPC ads. It is used to determine your cost per click (CPC) and ad rank in the ad auction process.
If your competitors have a much higher quality score than yours, then you are definitely overpaying for each click.
Google determines what position to place an ad in the search results based on a simple formula called AdRank. The formula is the following:
AdRank = Quality Score x Bid
Let’s see an example:
Suppose that your quality score is 3 and your bid is €2, therefore your ad rank is 6 (3 x 2 = 6). Now, suppose your competitor has a quality score of 10, and they are bidding €1, therefore their ad rank is a 10 (10 x 1 = 10).
The result?
Your competitor’s ad will be receive a higher position than yours and in addition you will be paying two times what your competitor pays for every click received.
It is also worth mentioning, that quality score determines much more than just ad rank. It also determines if a lot of features will actually work inside your Google AdWords account.
If you are looking for ways to optimize your PPC campaigns in terms of effectiveness, costs and ROI, get in touch with the online marketing experts at Convertico Media.