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Google Quality Score: It’s Also a Lot about Money!

26
Jan
google-adwords-logo

As you know, we manage a lot of campaigns in many different languages. Therefore, we wanted to conduct a study of quality scores to determine how to decrease the cost of acquisitions for our clients. We already knew that price is part of the adwords algorithm. However, what we didn’t know was that it had such a huge impact on the quality score.

Rlevancy to the users?

What is the relevancy of this to the users? Well, it matters, but not as much as you might think. What matters more is . . . the number of people searching for the keywords. The more the query is searched for, the more chances your quality score will be low!

Why is it that way? Simply put, the lower the quality score, the more you, as advertisers, have to pay to be there.

Example of how it works

Let’s use an example to see how this works. Say you sell a product “productname”  that is searched for a lot online. You can clean your landing page and make your product super relevant (you have to do that), but still your quality score will rarely hit 10. Because then you could attract a lot of traffic (remember it’s searched for a lot) for only the minimum amount of money.

Besides, other websites may be willing to pay that price for the same query, which would allow Google to make a lot more money.

Let’s assume that “productname” is searched for 100,000 times a day. If you score a 10, you could pay as little as $0.06 a click. If you have a CTR of 5%, you would pay Google 100,000 x 5% x $0.06 = $300 daily. This means $9,000 per month.
If they give you a quality score of 5, you would have to pay, for example $0.5 on the same query. You would give Google 100,000 x 5% x $0.5 = $2,500 daily. This comes out to $75,000 per month.

So, for very obvious reasons ($), Google makes it harder to get a good quality score for the most popular queries on their search.

Conclusion...

Of course, it also depends on the competition, how much the others pay and so on and so forth. But one thing is sure, the more popular the query is, the harder it is for you to get a good quality score, regardless of the competition (and you ad and page quality).

Relevancy is at the heart of the Google search. Money seems to run deep in the heart of the adwords system. Now you know.
 

Submitted by Hacene on Thu, 01/26/2012 - 07:31
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