About Google AdWords

Google AdWords uses “quality scores” to determine ad rankings, minimum bids, and distribution on the content network. There are quality scores at the keyword level, the adgroup level, and the account level. There are separate quality scores for ad rank and minimum bids. There are separate quality scores for the content and search networks. There are a lot of quality scores. They are used to ensure maximum profits for Google and to block spammy advertisers. The most important quality score is the one used for determining ad rank. Generally, the ranking equation is:

Rank Number = Max Bid * Quality Score

Google provides a detailed explanation of how ads are ranked here. Basically, the better your quality score, the less you have to pay to rank higher.

In the past the quality score was just an advertiser’s click through rate (CTR). Now it takes other factors into account, such as the quality of ads running for a keyphrase. You don’t know your quality score – this number isn’t revealed by Google. A keyphrase’s quality score is based on results on Google and not other networks. Keyphrases establish a history in an account; besides being used to determine their rank, this history is used to estimate a quality score for new keyphrases that haven’t yet established a history. In Adwords, it is possible for ads showing in lower positions to be paying a higher cost per click than ads showing in higher positions.

More Tools

Google provides a greater number of tools for its users. Probably the most useful are the AdWords Desktop Editor and the ads diagnostic tool. The desktop editor makes it easy to search through and edit accounts in bulk. The ads diagnostic tool tells you whether an ad is running for certain keyphrases, and why they aren’t, if that is the case. Adwords also has budget recommendation and budget optimizer tools.

Keyphrase Matching

Beginners in AdWords often have ads showing for too many queries. This is because they don’t know how to use match types effectively. It can be to the point that deleting phrases from an account makes no difference because there’s so much overlap and other phrases will match a query you’re trying to avoid. The types are negative, broad, phrase, and exact match. Both broad match and phrase match will show ads for queries that are expanded versions of a keyphrase. It is important to root out irrelevant queries with negative keyphrases. Google will also include “synonyms” in matching. For example, it is possible for keyphrases that include the word “shorts” to match queries that include the word “shirts.” This is another reason to use the ads diagnostic tool – Google overmatches queries. It’s important to analyze where clicks are coming from.