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AdWords Forum

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# 1
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Why An advertiser with High Ad Rank will lose his position due to high bidding to his very immediate competitor. If Google AdWords is for a quality Ad Rank, bidding more can bring to top position then what is the meaning of having more quality ad copy...i am confused Smiley Sad  

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Accepted by topic author Telerad S
September 2015

Re: AdWords Forum

Badged Google Partner
# 2
Badged Google Partner
Telrad,

What are your Quality scores? 8/10 - 10/10? or 5/10-7-10?

The Factors of Ad Rank are QS, CTR, BID Price ( and ad extensions)
Understanding Ad Rank.
https://support.google.com/adwords/answer/1722122?hl=en

Ad Rank
https://support.google.com/adwords/answer/1752122?hl=en
How fair would it be for a New Advertiser just coming into the marketplace, not having the ability to compete because there is not enough history to gain a truly High QS and CTR? They can Bid High to gain the History and compete from Day One. Otherwise there would be an unfair advantage.

Bid price is a factor in the Ad Rank Formula. So even if you have a 10/10 but bid like a $1, then the their is a mathematical spot in the equation in which the Factor of a Bid provides a higher end value result.

It is the same as a Google Search Algorithm in terms of weighted factors where a formula determines who has the best overall score and thus is ranked #1 and so on.

Example
A (.10) + B (5) + C (.5) = X ( whoever has the highest end result of X is given the # 1 spot.

In adwords the are low quality score parameters that filter or reduce the amount of impressions one will receive to keep best quality, but a high bid and click through rate can improve the QS for that keyword and thus bring them back into a better competition.

At the end of the day high QS but low low bids, is not economically effective for the Business Platform. If the competition is willing to spend they have every right to gain the position and thus also increase there CTR and QS.

Remember Bid Price is not what you end up paying, you end up paying 1 cent more then the person's bid price that you beat in the auction. Also if you have very high Quality Score you get the an advantage ( or discount ) on the actual price per click you eventual pay.

In many of my campaigns where I have the 8/10 - 10/10 I Bid Extremely high like $100 but only pay about $12- $20 a click on extremely competitive terms, where the market average is in the $30-$50 range.

If you own the Quality Score, Bid Like It. You will secure the top spot, and only Pay a fraction of your Bid prices. Put you money where your QS is so to speak and reap the rewards. TEST IT.
Good Luck


View solution in original post

Marked as Best Answer.
Solution
Accepted by topic author Telerad S
September 2015

Re: AdWords Forum

Badged Google Partner
# 2
Badged Google Partner
Telrad,

What are your Quality scores? 8/10 - 10/10? or 5/10-7-10?

The Factors of Ad Rank are QS, CTR, BID Price ( and ad extensions)
Understanding Ad Rank.
https://support.google.com/adwords/answer/1722122?hl=en

Ad Rank
https://support.google.com/adwords/answer/1752122?hl=en
How fair would it be for a New Advertiser just coming into the marketplace, not having the ability to compete because there is not enough history to gain a truly High QS and CTR? They can Bid High to gain the History and compete from Day One. Otherwise there would be an unfair advantage.

Bid price is a factor in the Ad Rank Formula. So even if you have a 10/10 but bid like a $1, then the their is a mathematical spot in the equation in which the Factor of a Bid provides a higher end value result.

It is the same as a Google Search Algorithm in terms of weighted factors where a formula determines who has the best overall score and thus is ranked #1 and so on.

Example
A (.10) + B (5) + C (.5) = X ( whoever has the highest end result of X is given the # 1 spot.

In adwords the are low quality score parameters that filter or reduce the amount of impressions one will receive to keep best quality, but a high bid and click through rate can improve the QS for that keyword and thus bring them back into a better competition.

At the end of the day high QS but low low bids, is not economically effective for the Business Platform. If the competition is willing to spend they have every right to gain the position and thus also increase there CTR and QS.

Remember Bid Price is not what you end up paying, you end up paying 1 cent more then the person's bid price that you beat in the auction. Also if you have very high Quality Score you get the an advantage ( or discount ) on the actual price per click you eventual pay.

In many of my campaigns where I have the 8/10 - 10/10 I Bid Extremely high like $100 but only pay about $12- $20 a click on extremely competitive terms, where the market average is in the $30-$50 range.

If you own the Quality Score, Bid Like It. You will secure the top spot, and only Pay a fraction of your Bid prices. Put you money where your QS is so to speak and reap the rewards. TEST IT.
Good Luck


Re: AdWords Forum

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# 3
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Got an excellent and in-detailed answer. Thanks a ton Smiley Happy