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Big Changes To Google Ads Keywords


Tuesday March 9, 2021

Reading Time: 10 minutes

In an effort to simplify keyword match types, Google Ads will be eliminating the broad match modifier (BMM) keyword match type. The broad match modifier match type will be merged into the phrase match type, and the current phrase match rules will be altered slightly, essentially creating a new keyword match type. Google is currently rolling out this change, and plans on it being the standard by July. If you run a Google Ads campaign, it’s important to understand these changes and how they’ll affect performance moving forward.

What Are Keyword Match Types?

Match types within Google Ads are rules that dictate what search queries can trigger your ads. These rules are applied via adding symbols to keywords. It’s important that the match type you choose aligns with your goals for the campaign. We’ve provided a brief overview of match types below:

Broad Match – With broad match keywords no symbols are added to the keywords, and any search query Google determines is a close match is eligible to trigger your ad to show. 

Broad Match Modifier – Plus signs (+) are added at the beginning of keywords to establish that that particular word must be included in the search query for your ad to show.

Phrase Match – Quotation marks are added around a keyword phrase to dictate that the phrase must be included in the search query in the exact same order to trigger your ads. Additional words can come before or after the phrase within the quotation marks, but the exact phrase must be included somewhere in the search query.

Exact Match – Brackets are added around keywords or phrases that dictate that the search query must contain that exact phrase, or very close variants, to trigger your ads. This differs from phrase match because no words are allowed before or after the keyword phrase.

Negative Match – These keywords are added to eliminate irrelevant searches. If you add a negative keyword, searches containing that word will not trigger your ad in the future. Though this is technically a match type, the application is slightly different so we’ll be focusing on the above 4 for now.

google merging broad match modifier and phrase keyword match types

How Are Broad Match Modifier and Phrase Match Being Merged?

Although technically the broad match modifier is being merged into phrase match, from a strict rule standpoint what’s really happening is both match types are being removed and replaced with a new one. According to Google “we’re bringing the best of broad match modifier into phrase match. As a result, phrase match will expand to cover additional broad match modifier traffic, while continuing to respect word order when it’s important to the meaning”.

The new phrase match keywords will operate more like a “we know what you meant” match.  keywords. With Google’s greater understanding of search intent, this is a logical move. Though the specific rules were different, there was always a lot of overlap between the core objective of broad match modifier and phrase match keywords. Both provided a middle ground between Broad keywords and Exact keywords, and moving forward keyword matching will revolve more around the core objective of the 3 keyword match types. 

  • Broad match for reach
  • Exact match for precision
  • Phrase match for a combination of reach and precision

What To Keep An Eye On Moving Forward

Consolidating the phrase and broad match modifier match types should help free up time to focus on other aspects of campaign optimization. Establishing 3 basic objectives for keywords match types helps simplify keyword selection and assessment. Instead of analyzing implications of match type logic, you can focus your efforts on other optimization efforts. 

Though this should help simplify campaign optimization, there is one main thing to keep an eye on in the future – your search terms report. This can be found in Google Ads under the keywords tab, and differs from the regular list of keywords. The search terms are the queries users actually searched that triggered your ad to show. This section allows you to assess your keyword strategy and make adjustments like adding negative keywords to prevent irrelevant searches and wasted spend in the future. 

It is crucial to keep an eye on this because this change leans heavily on Google being able to accurately identify intent. Though Google has gotten better at identifying intent, it’s not flawless. What Google considers a close match or relevant may differ from what you or your client considers relevant. Depending on the industry, this gap can be quite large. You’ll need to watch search terms closely to learn exactly how lax Google will be with relevancy under this new match type, and make adjustments accordingly. 

The Future of Google Ads

The simplification of keyword matching is another step towards automation. Google has implemented many changes recently, and almost all of them revolve around utilization of machine learning. Automated bidding, SMART campaigns, dynamic and responsive ads, etc are all indicative of Google’s goal to provide a better search experience with machine learning. Google’s Local Service Ads give a glimpse of this. With Local Service Ads you essentially just enter your credit card, select locations, topics, and schedules – and let Google do the rest. The performance of our client’s Local Service Ads has been fantastic, so machine learning definitely has its benefits. 

As Google gets better and better at understanding user intent and utilizing machine learning, there will be less and less of a need to focus on specific Google Ads features like keywords or manual bids. The future of Google Ads management will likely shift to assuring you’re giving the algorithm the data it needs to be successful, and making adjustments to persuade the algorithm and machine learning to align with your goals and produce optimal results. 

 

Reading Time: 9 minutes

Ah, the age-old question of internet marketing: should I focus on PPC or SEO? When brainstorming about your digital marketing strategy, you’ve probably asked yourself this more than once. Pay-per-click (PPC) ads, like Google Ads, pop up in relevant searches, promoting your company to a wider audience, while SEO can boost your ranking in these same results, free of charge. So what should you spend more time on? It’s not quite as complicated as it seems. We’ll guide you to online success in today’s blog.

What’s the Deal with SEO?

SEO, or search engine optimization, refers to the practice of putting relevant content on your website. This content helps to boost your site’s visibility to search engines and the people using them. For example, if you’ve got an online portfolio with a small amount of text and alt-tag-less images, search engines probably won’t know much about your products and services. By writing keyword-rich, long-form content, like pages and regular blog posts, you educate Google, Bing, and other search engines about what’s on your website. This incentivizes them to raise your ranking and send visitors your way.

SEO Pros  SEO has a lot of benefits. First, it’s free. If you take the time to educate yourself on SEO best practices, you can handle this entire process in-house. We recommend writing clear, descriptive, and helpful content that’s easy to read. Try to use keywords – terms you think people would search for – when putting together pages and blogs on your site. Avoid the temptation to “trick” the algorithm. Google and other search engines have evolved to punish scammy or sketchy sites that are stuffed with keywords or nonsensical language. These deceptive pages will be buried in search results.

SEO Cons – There’s one major drawback to sustained growth via SEO: it’s time-consuming. Setting up baseline SEO is simple. Continuing to improve is a bit more challenging. If you want Google to see you as a dynamic, exciting place to send searchers, it’ll take some regular writing. Long blog entries, ranging from 800 to 2,000 words, are a staple of killer SEO strategy. There are also some more technical components of SEO, like backlinking, with which you may want expert assistance.

In summary, SEO is a long-term strategy that requires a bit of elbow grease. By writing great blog posts and doing some keyword research, you can expect a boost in your ranking (and an increase in leads).

Google Ads Explained

Google Ads represent a pay-per-click advertising strategy; you and your competitors can bid on the chance to show ads on relevant Google searches. You can customize the goal of your campaign. Do you want potential clients to call you for a quote? Would you rather they visit your site to complete a contact form? This customization is available to Google Ads users.

PPC Pros – Google Ads don’t charge for exposure; instead, you’ll only be charged when a person clicks on your ad. Additionally, they involve a great amount of flexibility. You can modify campaigns to reach new audiences who may not have heard of your services before, or to promote a timely offer. This can be an incredible boost for smaller companies who don’t have time to update their SEO to reflect promotions and seasonal changes.

PPC Cons – Unfortunately, Google Ads aren’t a magic bullet. They cost money, and they don’t improve your organic search rankings. This means that you’ll need to do the work of SEO in addition to your advertising efforts; otherwise, you’ll be stuck paying for traffic instead of receiving any organically. However, they are a quick, exciting solution for businesses who are just getting started or who are short-staffed.

Basically, PPC is a tool for specific advertisement. If you’ve got a sale to promote, or if you’d like to reach new people, this is the path for you. Google Ads can help you to get eyes on your business, even if you’re in the earliest phases, while you build your SEO strategy from the ground up.

Finding Your Strategy

As we promised, the answer to SEO or PPC isn’t cut and dry. Both of these methods can help your business in different ways. By investing your time in creating helpful, descriptive content, you can boost your company’s organic search ranking. This helps you to be found more often and build your reputation online. Through campaigns on Google Ads, you can reach new audiences, promote seasonal sales, and reach new customers more immediately. By combining these two approaches, you can bring traffic to your site and enhance your chances of long-term success.

If you need help setting up stellar SEO that moves the needle (or Google Ads that draw more clicks), we’re here to help. Contact us for more info.

Webconsuls is a digital marketing company specializing in SEO and Google Ads.

Reading Time: 3 minutes

LeapFish.com is a search engine portal that allows you to search through Google, Yahoo, and MSN (Now known as Bing). Some say that LeapFish might even be competing with Google but I don’t believe it can since its main search results are based off of Google’s engine.

LeapFish does have some nice features though; it displays the Market Summary, top News, and Latest Videos from Youtube. The interesting thing about the videos is you don’t have to hit play, simply place your mouse over the thumbnail and it will begin playing.

The search is nice because you have the ability to compare results from the top three engines and see where your site ranks based on the keywords you enter.

As for advertising on LeapFish you pay for the keywords as would with any other PPC Campaign except you keep the spot until you are willing to sell it. For Example, if you purchase “California Drug Rehab” you hold that spot for every time someone searches that until you want to sell it. It’s interesting but not sure if it will last.

LeapFish has also been known for taking their client’s money and it’s possible those rumors began because of their advertisement slots.

Have you used it? What are your thoughts on this website?

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A very important feature of Google AdWords is the ability to target all areas you have defined as your target audience, but just as importantly is not having those outside your coverage area not able to find you.  Pay Per Click is a pay to play game, and throwing away money on a searcher who finds your ad and therefore costs you money without being able to utilize your product/service hurts the program significantly.

In a specific case, I was targeting only the state of Florida.  So to sum up, I only wanted people in Florida to be able to find my ads.  The problem is, my tracking shows a majority of clicks from outside the state, namely New Jersey.  How can this be?  Here’s Google’s answer:
I. IP Address Does Not Match User’s Location- the good old AOL example, where all AOL users have an IP of Virginia, their home base.
II. Target Region Larger Than Expected- this makes no sense.  I have a preset area called a STATE selected.
III. Ad Showing on Location-Specific Queries- technically my ad will still come up when searchers outside the state of Florida specifying Florida in the search query like ‘Florida shoe shine’.
IV. Ad Showing on Country-Specific Domain- like point 3, searchers specifying my target area from outside the country will still find my ad.
So to sum up- the geo-targeting is not going to be able to limit the ads as advertised, although for points 3 and 4 seem to still be targeted results.
If you have information outside these 4 Google rep. points- please share.
*Update – Google AdWords now has the ability to target users in your location, or users in – or interested in – your location. Choosing users in my location will eliminate ads showing outside your target location.
Reading Time: 4 minutes

The continued quest in the Pay Per Click world of writing a good and targeted ad within the allotted 70 characters is not an easy one. It is widely practiced concept of writing an ad not only to attract searchers to your business/web site, but also to deter those that are not targeted to your desired audience- keeping in mind clicks are far from free. I have written in the past, not all traffic is good traffic in the PPC world.

Recently a client of mine was getting a substantial amount of clicks and responses to the call to action of his site- phone call traffic- but those phone calls were mostly of poor quality. A tactic was chosen to modify the ad to let the searcher know up front the minimum cost of the service at hand, as to confront that searcher (potentially) before the per click charge was realized. This made a significant difference in the quality of caller, because we were able to educate the searcher to what he/she was getting into with the facility at hand.

That is, the ad itself, not the landing page, stated what the minimum cost was as to get in the door. This promotion of up front facts supports the no nonsense approach that works more times than not. We are looking to promote clicks for those not scared by the ‘sticker shock’ of the price- a way to potentially modify behavior in our favor and lower costs at the same time. In this instance the time of taking that un-targeted phone call traffic was also costing money.

It may make sense and work for you in your marketplace. Use this idea particularly with any competitive advantages you may hold and highlight those things. You can reach the searcher before they take money out of your wallet and put it into Google or Yahoo’s.

Let Webconsuls reduce your spend with tools and methods like this. We’ll put it into practice for your businesses unique needs.

Reading Time: 2 minutes

Many Google Advertisers received an email from AdWordsnoreply@Google.com stating “In the coming weeks, we’ll upgrade your AdWords account” to their new interface.

This auto email itself stated the following points (to summarize):

-Its a ‘a new web interface designed to make campaign management faster and easier.’

-‘You’ll have at least 30 days from the date of this email before you’ll be required to use the new interface’

-‘We’re working to ensure that the new interface contains all of the reports and controls you need to manage your campaigns effectively’

Therefore there are two major points I will summarize with:
1. This is happening to everyone
2. You don’t have a choice (so you might as well switch and get used to it asap)
If you have already familiarized yourself with the new platform, please pass along any help or feedback you may have.
Reading Time: 3 minutes

Marketing at the keyword level defines 2 basic types of keywords- general and specific.  General marketplace keywords are expensive because competition is high due to high search volumes, but these keywords are expensive because their ROI tends to be poor.  A general search query means the seacher is not very far along in the buying process and at this point is educating themselves on the market; even if this education is just comparative pricing.  Specific keywords are those further along this buying process where it is evident in the search query that the searcher knows what he or she is looking for.  In extremely specific cases, product numbers are searched for goods and area codes for services.

So along the process of educating, comparing and buying a good or service it also makes sense then, to tailor your ads to each point along that graph too.  I would even argue in many cases that you don’t want to be found along the 1st two points of the graph, but nevertheless, let the data speak for itself– i.e. track everything.
 
To put this into practice it makes most sense to have ad groups within a given campaign differentiated by keyword specificity as it relates to the buying process.  Therefore it is a clear path to writing for the different targets.  Ad group 1 is written for the uneducated searcher, ad group 2 to the price comparer and 3 (if different than step 2) is for the buyer with credit card in hand.  Again, the keywords are making the distinctions for all 3 steps.
 
Confused about how this relates to your web site or online marketing?  Let us know and we’ll make it make sense customized to your business needs.
Reading Time: 4 minutes

Have you ever gotten an email notification from Yahoo Search Marketing stating that your ‘Minimum bid requirements have increased for some of your keywords’ in a Pay Per Click account you have with them?


Well let me attempt to set the record straight.  This auto notification email specifically pertains to a keyword or set of keywords in your account that Yahoo is adjusting is invisible ‘floor’ of bidding.  This is to say that for Yahoo’s PPC program, they choose and set a minimum bid required to be displayed at all, even on lower pages.  Therefore, the ‘old school’ model of being at the minimum bid of $.10 may not get you any impressions.


This auto notify email is then attempting to tell you that you may need to increase your bids as a result of this invisible floor raising up on your keyword(s).


These emails shouldn’t though, give you too much of a problem in having to log into your account and track down the affected keywords, because if you were at the minimum bid previously and now wouldn’t be displayed, you weren’t pushing this keyword aggressively in the 1st place.


It is annoying to me how Yahoo goes about its business in attempting to alarm you with auto emails, so you can take time out of your day and in their hopes, spend more money with them.  Again, if this was an important keyword for your campaign, you would be attempting 1st page positioning and therefore wouldn’t be affected.


Yahoo is sure to let you know when your account has run out of money or in this case, when it wants you/is making you bid higher on the per click level.  Now I just hope I can get some service on why they reject an Ad URL change and NOT tell me about it.


Do you have a marketing account with Yahoo and have no idea what I’m talking about?  Let me educate you and help build your business.  Yahoo historically around 33% cheaper than Google AdWords, both of which are necessary.

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Reading Time: 3 minutes
Yahoo Search Marketing, the Pay Per Click (PPC) division of Yahoo! Inc has been historically behind the 8-ball, or more specifically behind Google AdWords for the last 3 to 5 years of PPC advertising.
 
Yahoo’s argument was, we were the 1st on the scene and Google has since leap-frogged us by taking our model and improving upon it- an argument with some validity.  But now 5 years down the road, Yahoo is still playing catch-up.  This is even after the famous ‘Panama’ launch that was to solve everything.  Not to be confused with your favorite South American canal, or a Van Halen song.


Well Yahoo has taken a small step in the right direction by now including a full ad scheduling feature.  Previous to this upgrade, Yahoo’s scheduling was all of, start date- end date.  Now, like Google, the PPC advertising can be scheduled to the hour, every hour of every day of the week.

For example, I want to push my Ad’s in the morning only, Monday, Wednesday and Friday but have evenings only on the weekend.  You can customize and specify exactly to the 1/4 hour when your ads will run and when the won’t.  The trick now is deciphering when and when not to run your ads.

Do you feel like you want to utilize this type of tool, targeting only parts of the week where you see your best results?  Let us help- Webconsuls.com.

Reading Time: 4 minutes

Google has created another AdWords tool for finding keywords to put in a PPC account, creating more competition, bidders, which therefore raises the price in addition to other factors.  This time the tool proposes that it finds relevant keywords by ‘matching (keywords) to specific pages of your website with your ad and search share’.  To translate, it is trying to provide keywords not currently in the account that are best for the account as determined by looking at the whole picture- website, ads and budget.

Of course past PPC blogs on ‘helpful’ tools created by the big search engine giants have made my tone a bit cynical.  These tools are created at best based off user demand, but always tailored to and quietly aimed at revenue.  This is not to say that there isn’t utility and useful qualities of a tool like this one, but it is important to read between the lines.

I used the tool for the first time on a current account I manage, and found some keywords I didn’t currently use; but nothing major or shocking.  Having said that, that is the way it should be.  This should be a comment that I am doing my job as a Pay Per Click administrator.  On the other hand, this tool may be helpful for business owners who are attempting to run the marketing themselves and have to balance the business with the marketing.

The tool can be found in the Campaign Management tab, ‘tools’ sub-tab left-hand column.  Use of the tool is simple- put the web address in the search field and in another box type the essence of the topic to be explored.  The parameters included in the results are keyword suggestions, monthly searches, competition as a bar graph, suggested bid and ad share.

Use this tool in addition to the Keyword Tool, but in both beware of general and expensive keywords that will not return a positive ROI.

Do you need help with Google AdWords or any PPC tools like this one?  Let us know at Webconsuls.com.

Reading Time: 3 minutes
PPC ad scheduling

Both Yahoo and Google have their own forms of ‘ad scheduling’.  This means that we can choose when we want our ads to be shown and just as importantly, when we don’t want our ads to be shown– well kind of.

Google fully provides this functionality- hour by hour, day by day, even down to every 1/4 hour, when to display your ads.  The campaign ‘edit status’ button has what looks like a hyperlink, which is where you can find the ad scheduling function.

Yahoo Search Marketing on the other hand, allows you to schedule a start date and an end date, which is their full and complete definition of ad scheduling.  Therefore, taking your campaigns on and offline at certain hours is a manual process– log in to the account and literally turn the account offline or back online to perform the same function.  This is ridiculous- Yahoo needs to step up to the plate.  We are not asking for voice command here.

Both search engines have the faults and points of utility, but for this function it’s a runaway: collegiate versus kindergarten.
Reading Time: 4 minutes

In pay per click marketing, in most cases I find myself defining the typical internet user/searcher/customer in very specific terms. I must assume that the potential customer is looking only for the particular item/service searched– nothing more nothing less. Therefore, specific landing pages corresponding to that search term are a must, while sending a searcher to your homepage is not optimal.

To quote the linked article, “The first and most important objective of the landing page is to convince the visitor that they’ve come to the right place.” In my opinion this must be done, clearly, simply, and above the ‘fold’ or without making the searcher scroll. The Szetela article uses the metaphor of going to a Sears department store. When you know the specific item you are looking to purchase, you can go directly to it by parking and entering the store in the door leading to that particular department. You then find, purchase and leave the store creating as efficient and seemless an experience as possible.

If the searcher then stays to browse or comes back later for similar items, it is all gravy. But the conservative, strict approach assumes this is not the case and in my experience, it is not. Secure the immediate sale- any other objectives cannot be campaigned for with statistical confidence.

The browser or the type of person who enjoys shopping and spending time do so is not the person we are concerned with as previous topics have covered. In short, the browsing shopper will either find the product regardless of what ‘department door’ they arrive in or aren’t looking to buy in the 1st place. They are simply browsing.

Please read the article for another point of view and as always- share your experiences, tips and tricks by replying and helping out the rest of the viewership.

http://searchenginewatch.com/3631984

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Analyze Your Ad Performance
Ads Diagnostic Tool Are your ads showing for a particular search? Find out with this tool.
Ads Preview Tool See your ad on Google without accruing extra impressions, and preview your ad as it appears to users in other geographic locations.
Disapproved Ads Find out which ads have been disapproved and why, (editorial status).
Conversion Tracking Define campaign goals and then pull data to determine which ads are the best at helping you reach those goals.
My Change History Browse changes you’ve made to your account since January 1, 2006.

When it is all said and done, your ad performance is what determines your minimum bids for keywords for positioning, or in other words- the above analysis is how to make your campaign as cheap as possible by being efficient and relative according to Google.

Contact us at Webconsuls for more information and feel free to add to this topic if you have additional notes.

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Google AdWords has in a beta test a bidding tool called Smart Positioning. The function of this tool aims to place your ad in the most cost-effective position each time it’s displayed. Here are Google’s words in how it works.

How Smart Positioning works.

Here’s an overview of what happens when your campaign is opted in to Smart Positioning:
1. Smart Positioning calculates incremental CPC’s to evaluate the effects on cost and click through rate that would be associated with a higher position for your ad.
2. Once our system determines the incremental CPC for putting your ad in a higher position, it compares the incremental CPC to your maximum CPC bid.
3. Your ad is placed in the highest position possible, as long as both the actual CPC for that position and the incremental CPC are less than your maximum CPC bid.

So essentially, this Google AdWords tool attempts to give its advertisers the best position given recent click data and the bid landscape. It then actually changes the max CPC in the account to reflect the bid it deems most ‘efficient’.

I hate to always be the cynic, but with my history in working with one of the major search engines, I know that ‘helpful’ tools may or may not be as helpful as they are described, but they always work in the favor of the search engine.

Here are some things that make me question the tool and therefore whether I will use it or not in the long run.
1. Since my bids can be changed without my specific knowledge, I am dissuaded.
2. Because Google is providing this ‘help’ to multiple advertisers in competition with each other on the same keyword, I can see a problem developing; either the tool won’t be very effective or certain advertisers will be favored and/or others hurt.
3. Google only provides help in ways that increase revenue as I stated earlier, so I cannot see this costing me less, but quite the opposite.

In conclusion of this early evaluation of a new bidding tool, albeit before it is in wide use, I prefer a bid to position model where I am paying the least possible for a particular position and I have real expectations on my cost and display position. When things can be open ended, Google can take advantage of the account without having to defend their actions. I know what their defense would be when you finally reach a customer service rep- ‘in the terms and conditions it clearly states we can raise your bids’.

I am out.

Reading Time: 4 minutes

Google AdWords does provide a way internally to get suggestions for keywords in your marketplace, its called the Keyword Tool. This tool is found when drilling into the account at the ‘keyword’ level. This means you have clicked past both the Campaign and Ad Group levels to display your keywords and ads.

This tool is free to AdWords users, so great right. Well in the past not as much because depending on what you gave the tool as a starting term for more suggestions, the tool spit out those suggestions from most general (least useful) to specific. Furthermore, the only information associated with these suggestions was 2 simple horizontal bar graphs detailing, ‘advertiser competition’ and ‘search volume’. So hopefully your are following me in that no numeric data was given whatsoever.

Now Google has expanded the tool to return suggestions with ‘approximate search volume’ for the last month and ‘approximate average search volume’ with an actual value. Practically speaking, your campaign has only to spend a predetermined amount any way, so its not as if one regularly finds him or herself adding up search volumes, but it is nice to quantify what Google used to shove into a half inch blue bar.

When it comes down to it, we need to have all the necessary keywords in the PPC account regardless of search volume because we need to target what it is we have deemed necessary in achieving our projected goals. That is, we do the best we can with what we can in the given market with a given budget for a certain business model. But I can say it is significant that Google’s Keyword tool is a bit more useful, and frankly it is nice to see Google sharing any real data with us at all. I’m sure tired of getting email replies that might as well have been some fraction of a bar graph. But Google must be listening to the people to some extent in changes as little as this one.

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Microsoft and Yahoo have yet to work out a deal for Microsoft to takeover Yahoo via a stock bid in the $30 range. We at Webconsuls are not noting this in the slight chance that you hold Yahoo stock or in my case stock options. It is significant to note the impact of re-merger of the 2 giants in the search results category.

That is, Yahoo and MSN used to have a search marketing partnership which ended about 2 years ago. With Google the clear market share majority player, it would be nice to see Yahoo beef up its partners, especially for MSN who since the split from Yahoo has yet to be a formidable opponent.

In a perfect world, Yahoo Sponsored Search would give us the option of eliminating the partner network with the exception of MSN, should a merger ever be completed.

We’ll keep you updated.

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What is Pay Per Click ‘Quality Score’ and how is it calculated?
Quality Score is a dynamic variable assigned to each of your keywords. It’s calculated using a variety of factors and measures how relevant your keyword is to your ad text and to a user’s search query, according to Google.

About Quality Score

Quality Score influences your ads’ position on Google. It also partly determines your keywords’ minimum bids. In general, the higher your Quality Score, the better your ad position and the lower your minimum bids.

Quality Score helps ensure that only the most relevant ads appear to users on Google and the Google Network. The AdWords system works best for everybody—advertisers, users, publishers, and Google too—when the ads we display match our users’ needs as closely as possible. Relevant ads tend to earn more clicks, appear in a higher position, and bring you the most success.
For calculating a keyword’s minimum bid (PPC only, not content network or content targeted ads):

  • The keyword’s historical click-through rate on Google
  • The relevance of the keyword to the ads in its ad group
  • The quality of your landing page
  • Your account history, which is measured by the CTR of all the ads and keywords in your account
  • Other relevance factors***

Unfortunately, that is all Google will tell us, partly to avoid people gaming the system and partly to be less accountable. The ability to control earnings this way (in my estimation) will keep Google (and Yahoo in their shadow) from ever completely erasing the veil.

All we can do is play by the rules and put ourselves in the best position to pay the least for the desired position. This includes rotating ads, writing the most direct ad, and having the site back both of those points us with our “call to action”, or what we are looking to have the user/searcher do. This must be done clearly, easily and within the top fold of the landing page.

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The following linked article from The Register accuses Google’s AdWords, namely the ‘automatic matching’ feature to be untargeted and an outright waste of funds in most instances.

In short, automatic matching weakens the parameters and rules of defining ‘targeted’ in PPC terms. If I sell Adidas shoes, the articles explains, I don’t want to come up for a search on slippers. That would simply be a waste of money. I would go as far to add that in today’s world of short attention spans, anything not directly or literally an Adidas shoe is not targeted enough- let alone slippers.

Pay per click is too reliant on the ‘conversions to dollars spent’ ratio to allow for any more leniency than exactly what I typed in. Again, attentions spans generally don’t allow for it. Additionally, if the search term in question is on the general side where this rule may not directly apply, then the traffic itself will be of the browsing type not the converting (purchasing, buying, targeted lead) type. So in this case my clients probably aren’t interested in the 1st place.

But that is a whole different argument in itself.

http://www.theregister.co.uk/2008/03/18/when_google_does_evil/page2.html