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Can low daily budget lead to low QS?

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# 1
Visitor ✭ ✭ ✭

I am starting 4 new campaigns for a company who has failed at AdWords in the past. I created a new account to reset the low QS, and CTR history. With the available budget, I divided it amonst all campaigns so that all have a daily budget of $40 per campaign.

 

My logic was to set the MAX CPC high at around $7-$8 because it is a highly competitive market, therefore I wanted to ensure top 3 placements to acrue clicks, increase CTR leading to a higher QS and a lower CPC down the line.

 

However, after running all campaigns for a week, QS remain at 2-3, giving me a Top Page estimate ranging in the $7 - $10, in some cases all the way to $20.

 

In general, the keyword report for most keywords says both Ad Relevance and Expected CTR are below average. Average Position is all over the place depending on the ad group. It can go from 2.8 to 5.6 to 7 depending on the ad group. I recognize the ad copy can absolutely be improved, but my question is the following:

 

Can setting a MAX CPC high in relation to the daily budget limit my click potential for AdWords? Therefore, if my setup only allows for 5 clicks according to my MAX CPC of $8 and daily budget of $40, am I hurting myself from setting a high CPC from the get go? 

 

I'm in quite the conundrum because if I set the MAX CPC lower to allow for more clicks, then my ad position will be lower and I will receive less clicks (becasue top 3 definately receives more clicks), leading to lower QS and higher estimated Top Page Bids. Am I over analyzing this? Or shoiuld I just hit the copywriting and get it more relevant?

 

 

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Marked as Best Answer.
Solution
Accepted by Mini-CM (Community Manager)
September 2015

Re: Can low daily budget lead to low QS?

Top Contributor
# 2
Top Contributor
Your initial approach is the one I would take and I believe is still the approach you should take.

QS takes into account how those keywords performed for other advertisers... this INCLUDES your other account as it is seen as another advertiser.

You'll just have to wait. Leave it as is and wait for the clicks to come through. It will take longer than normal.

Remember too that the CTR element of QS is normalized so while bidding higher will accrue more clicks, the higher quality score of those clicks from top spots aren't really taken into account. Only when compared to others in the same spot.

You nailed it. Hit the copywriting, improve the user experience on the landing page and test the crap out of your ads (with the little data you have).

The keywords will get back to where they should be (if indeed they're not completely doomed to QS hell).

View solution in original post

Marked as Best Answer.
Solution
Accepted by Mini-CM (Community Manager)
September 2015

Re: Can low daily budget lead to low QS?

[ Edited ]
Top Contributor
# 3
Top Contributor

Hello jpbads; Welcome to AdWords;


This is a nice question with a nice approach and logic. However, two points to keep in mind; (other contributors to the community probably will add some more prospectives):

[Edited: ohh...I see that while I was answering and on the phone, Dave posted his input..   Smiley Happy)


  1. CTR is the major part of the QS and the most important, but your ad-copy and landing page relevancy have also some contribution (and as you said "Ad Relevance and Expected CTR are below average") - I would try to work on my ad-copy and landing page.
  2. The other point is that as long as you haven't reached the 1000 impressions your QS is essentially based on other advertisers QS for that keyword (using exact match) . The logic is that you need to get some significant number of impressions before your CTR is can be considered statistically significant. Until then, the system assigns you a QS (for a specific KW ) based on the average QS of other advertisers.

 

-Moshe

 

 

 

Moshe, AdWords Top Contributor , Twitter | Linkedin | Community Profile | Ad-Globe
Did you find any helpful responses or answers to your query? If yes, please mark it as the ‘Best Answer’

View solution in original post

Marked as Best Answer.
Solution
Accepted by Zee (Community Manager)
September 2015

Re: Can low daily budget lead to low QS?

Top Contributor
# 10
Top Contributor

Here are a few more ideas, along with the others already presented:

 

- if the budget / CPC ratio is very low (only a few clicks fit the budget), and there is high traffic potential, your ad will rarely show. The system cannot risk serving ads for you (let's say setting your ad group to a virtual "ok to serve ads" status), because if you get many impressions, once your ad is shown there's a chance you'll get clicks as well. If you get too many clicks, and use more than 120% of your budget, the system has a problem (it promises never to spend more than 120% of your budget, in any given day). So in such situation your ad will only show in times of day and regions where the expected clicks are low enough not to jeopardize the 120% promise

 

- the 1000 impressions until the keyword QS is yours refers to "exact match impressions". If you're using broad match or phrase match keywords, you'll have to hit around 1000 exact match impressions, not any kind of impressions. Example: "red cars" needs 1000 impressions for a search term which is exactly "red cars". Impressions for "red cars in London" do not count towards the QS of "red cars".

 

What you need, in my view, is the following:

 

- a very restrictive match type, ideally only exact

- carefully crafted ads, pointed to the right landing pages, as to avoid any relevance / landing page warnings (aim for at least "average", if possible).

- a budget high enough to accomodate more clicks, combined with day parting (set your campaign to only show ads during the peak hour of day. One hour, that's all).

- A CPC higher than FPB, ideally around top of page bid

- restricted targeting

 

What you want is a chance to show your ad in a good position, and get the clicks. More than the competition does. Once you see the CPC going down and the QS going up (may take a few days sometimes), you'll pay less and less.

 

My 2 cents.

Calin Sandici, AdWords Top Contributor | Find me on: Google+ | Twitter | LinkedIn | myBlog
Was my response helpful? If yes, please mark it as the ‘Best Answer.’ Learn how here.

View solution in original post

Marked as Best Answer.
Solution
Accepted by Mini-CM (Community Manager)
September 2015

Re: Can low daily budget lead to low QS?

Top Contributor
# 2
Top Contributor
Your initial approach is the one I would take and I believe is still the approach you should take.

QS takes into account how those keywords performed for other advertisers... this INCLUDES your other account as it is seen as another advertiser.

You'll just have to wait. Leave it as is and wait for the clicks to come through. It will take longer than normal.

Remember too that the CTR element of QS is normalized so while bidding higher will accrue more clicks, the higher quality score of those clicks from top spots aren't really taken into account. Only when compared to others in the same spot.

You nailed it. Hit the copywriting, improve the user experience on the landing page and test the crap out of your ads (with the little data you have).

The keywords will get back to where they should be (if indeed they're not completely doomed to QS hell).

Marked as Best Answer.
Solution
Accepted by Mini-CM (Community Manager)
September 2015

Re: Can low daily budget lead to low QS?

[ Edited ]
Top Contributor
# 3
Top Contributor

Hello jpbads; Welcome to AdWords;


This is a nice question with a nice approach and logic. However, two points to keep in mind; (other contributors to the community probably will add some more prospectives):

[Edited: ohh...I see that while I was answering and on the phone, Dave posted his input..   Smiley Happy)


  1. CTR is the major part of the QS and the most important, but your ad-copy and landing page relevancy have also some contribution (and as you said "Ad Relevance and Expected CTR are below average") - I would try to work on my ad-copy and landing page.
  2. The other point is that as long as you haven't reached the 1000 impressions your QS is essentially based on other advertisers QS for that keyword (using exact match) . The logic is that you need to get some significant number of impressions before your CTR is can be considered statistically significant. Until then, the system assigns you a QS (for a specific KW ) based on the average QS of other advertisers.

 

-Moshe

 

 

 

Moshe, AdWords Top Contributor , Twitter | Linkedin | Community Profile | Ad-Globe
Did you find any helpful responses or answers to your query? If yes, please mark it as the ‘Best Answer’

Re: Can low daily budget lead to low QS?

Visitor ✭ ✭ ✭
# 4
Visitor ✭ ✭ ✭
Hello Moshe,

I have a question, I need your suggestion:

I have read in google that everytime when a customer type in google search QS will calculate. If this correct then how we can improve our KW quality score? Is their any way to stick with one QS.

Re: Can low daily budget lead to low QS?

Top Contributor
# 5
Top Contributor

Hello again yugam;


You are right ! QS is calculated for every query. The value presented is an "average" value (after the KW has reached 1000 impressions)

The major and the most significant parameter, that determines QS value is CTR. As you increase CTR - you get higher QS. To meet that, you need your ad-copy to be attractive and your ad ranked high. So, eventually,  the ad gets as many clicks as possible.

 

Moshe, AdWords Top Contributor , Twitter | Linkedin | Community Profile | Ad-Globe
Did you find any helpful responses or answers to your query? If yes, please mark it as the ‘Best Answer’

Re: Can low daily budget lead to low QS?

Visitor ✭ ✭ ✭
# 6
Visitor ✭ ✭ ✭

Yeah I'll stick to the plan until the end of this week to see if QS goes up. My only concern is my MAX CPC is so high I can't really acrue that many clicks, because the daily budget is reached quickly. So Google doesn't show my ad as many times as it could, in order to protect my budget, right?

 

Having read about CTR being normalized for ad rank, would you recommend setting bids lower next week in an effort to increase QS? I would have a lot more impressions and lower CTR, but Google would show my ads more often and perhaps people will click more on my ads. If people do click more then, even though my CTR will be substantially lower, for that ad rank the increase of clicks (from 5 daily to maybe 10 daily if I cut MAX CPC in half) might be enough to increase QS because I get more clicks in the end.

 

Does that make sense ? 

Re: Can low daily budget lead to low QS?

Top Contributor
# 7
Top Contributor

Hello again jpbads;


I am not quite sure I got you right, But, if QS goes up you can lower your bid.


I did not want at first to "overwhelm" you with additional learning material. Since you said that you had read on CTR,  this classic video, by Google's chief economist, on Adwords bidding, and the actual price an advertiser pays is worth watching:

 



 

Moshe, AdWords Top Contributor , Twitter | Linkedin | Community Profile | Ad-Globe
Did you find any helpful responses or answers to your query? If yes, please mark it as the ‘Best Answer’

Re: Can low daily budget lead to low QS?

Visitor ✭ ✭ ✭
# 8
Visitor ✭ ✭ ✭

Hey that video is great, although it stops at the 8:09 mark. Here is a video that doesn't stop

 

http://www.youtube.com/watch?v=a8qQXLby4PY&feature=related

 

I actually meant just reading about the normalization of CTR, I wasn't aware of that. But what I liked most of this video is the simplicity in which it explains Ad Ranking. Also it shows how important CTR vs. Relevance vs. Landing Page is to QS with the pie chart. 

 

Thanks!

Re: Can low daily budget lead to low QS?

Top Contributor
# 9
Top Contributor

jpbads;

Thanks;

I bookmarked your link for future reference....

 

 

Moshe, AdWords Top Contributor , Twitter | Linkedin | Community Profile | Ad-Globe
Did you find any helpful responses or answers to your query? If yes, please mark it as the ‘Best Answer’
Marked as Best Answer.
Solution
Accepted by Zee (Community Manager)
September 2015

Re: Can low daily budget lead to low QS?

Top Contributor
# 10
Top Contributor

Here are a few more ideas, along with the others already presented:

 

- if the budget / CPC ratio is very low (only a few clicks fit the budget), and there is high traffic potential, your ad will rarely show. The system cannot risk serving ads for you (let's say setting your ad group to a virtual "ok to serve ads" status), because if you get many impressions, once your ad is shown there's a chance you'll get clicks as well. If you get too many clicks, and use more than 120% of your budget, the system has a problem (it promises never to spend more than 120% of your budget, in any given day). So in such situation your ad will only show in times of day and regions where the expected clicks are low enough not to jeopardize the 120% promise

 

- the 1000 impressions until the keyword QS is yours refers to "exact match impressions". If you're using broad match or phrase match keywords, you'll have to hit around 1000 exact match impressions, not any kind of impressions. Example: "red cars" needs 1000 impressions for a search term which is exactly "red cars". Impressions for "red cars in London" do not count towards the QS of "red cars".

 

What you need, in my view, is the following:

 

- a very restrictive match type, ideally only exact

- carefully crafted ads, pointed to the right landing pages, as to avoid any relevance / landing page warnings (aim for at least "average", if possible).

- a budget high enough to accomodate more clicks, combined with day parting (set your campaign to only show ads during the peak hour of day. One hour, that's all).

- A CPC higher than FPB, ideally around top of page bid

- restricted targeting

 

What you want is a chance to show your ad in a good position, and get the clicks. More than the competition does. Once you see the CPC going down and the QS going up (may take a few days sometimes), you'll pay less and less.

 

My 2 cents.

Calin Sandici, AdWords Top Contributor | Find me on: Google+ | Twitter | LinkedIn | myBlog
Was my response helpful? If yes, please mark it as the ‘Best Answer.’ Learn how here.