What is your ads rank number? Rank number for your ad is the position that your ad would be shown at the search result.
For example, the search result for “seo”, the ad with the very high position are “Professional SEO Solution”, “SEO Workshops Singapore” and “SEO Experts since 1997″. These three ads stand a very high chance for the potential buyers to click on their ad because they have gained the position advantages.
*click to enlarge
This is the normal user behaviour just like you and me. When we google something, we always click on the first few search results and lazy to stroll down. This is very common and therefore the higher the ad position, the higher the CPC Bid we should place at adwords.
In adwords, there is another important element that can help to lower the CPC bid but still gain us the higher rank number. This is the Quality Score.
Rank Number = CPC Bid x Quality Score
From the schedule, it shows that Advertiser B has higher CPC bid but his position is at No.2. Why? Because the quality score of Advertiser B is the lowest, only 1. Therefore we can clearly see that Quality Score plays an very important role in determine your ads position and in term of the cost savings.
Still remember What are the components of Quality Score? There are 3 important components:
- CTR
- Keyword and ad text relevance
- Landing page quality
If your CTR is very good but you still need to bid higher price for your ad to show on top, perhaps you need to adjust your keywords and your landing page quality accordingly.
Ya! That’s very true. Google use CTR to increase their ad revenue. From your example: Although the first ad has a lower bid price, the total ad revenue from 3 ads is more. If the 2nd ad is at the first position and the 1st ad is at the second, lesser people will click on both ads. google will make less money compare to this arrangement. A guy who used to design the Adword strategies and team taught me that :)
Haa Alex, who is “the guy who used to design the Adword strategies and team”? very interested to know.. :)