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Why do you still have to bid high on searches with no other ads?

Visitor ✭ ✭ ✭
# 1
Visitor ✭ ✭ ✭

I'm bidding on various search terms, some are really popular and my ads appear along with lots of others, and appear higher or lower depending on my bid. However on some search terms NO ads appear, yet mine still don't show up unless I increase my bid. Why is this? Surely showing my ads with a low bid will earn Google more than showing no ads at all? It seems to defeat the point of bidding when I have to bid high no matter what the competition.

1 Expert replyverified_user

Re: Why do you still have to bid high on searches with no other ads?

Participant ✭ ☆ ☆
# 2
Participant ✭ ☆ ☆

Hi Michelle,

 

Welcome to Adwords Community.

 

This is the very common question new advertisers asked many times and answered in this forum. Here is the recent thread where top contributors gave their valuable answers. I hope that helps you.

Re: Why do you still have to bid high on searches with no other ads?

Collaborator ✭ ☆ ☆
# 3
Collaborator ✭ ☆ ☆
Hi,

Google would rather showing no ads than showing ads provide a poor quality experience for users who click on them, and which might damage long-term user trust in the the quality of information delivered by AdWords ads.

If you look for your ad and see no competitors, this does not necessarily mean that there are no others advertising on that keyword. For example, you may be searching at time the other advertisers' campaign is inactive. Indeed, that's rare to find a keyword none is bidding on.

However, Google has minimum threshold for ad placement, your ad should meet this minimum threshold in order to show.

Re: Why do you still have to bid high on searches with no other ads?

Top Contributor
# 4
Top Contributor

Hi there;

>>"Surely showing my ads with a low bid will earn Google more than showing no ads at all?

 

Well...  This is a nice argument, but it seems that Google is more concerned about your ad being relevant  to users, against  specific search terms. Relevance (as Google defines) is determined by an ad-rank which is QS times the bid.

 

In order for your ad to be shown, there is a minimum threshold of ad-rank.  Google says something along the following lines: (I am simplifying... The actual algorithm is more complex)

  • If your relevancy (per given keyword) is high enough - that is, having a high QS -  your ad rank should be high enough to meet the threshold, and to  participate in the auction, and  (the ad) could win an ad-slot. (Depending how high is your ad rank, and how many competitors.)
  • If your QS isn't high enough, and you still want your ad to win a slot - Google says: "no problem- pay more" (i.e - higher your bid)
  • This is (the principle of) Google's approach to ensure that only relevant ads (against a given search query) are shown.

Watch the following video by Google's chief economist, Hal Varian, about the auction process.

 

 

 

Moshe, AdWords Top Contributor , Twitter | Linkedin | Community Profile | Ad-Globe
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