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Lowering bid to increase profits creates a low quality score

Follower ✭ ✭ ✭
# 1
Follower ✭ ✭ ✭

I am a bit new to this game but here is my dilema.

 

Say I have £1200 to spend this week on AdWords. £200 of which i bid highly in my local area as the conversoin rate is very high.

 

The other £1000 is for the entire UK. Now lets say for the keywords I am targeting there is enough for me to fill my budget even when bidding low enough just to hit position 6. So instead of targeting the first few positions with a high CPC, I target a low position and get double the profit and my CPC was halfed.

 

The problem is that apparently because lower position have such a terrible CTR, my quality score can be seriously affected. That can apparently raise the price of the UK campaign on position 6 significantly, and also affect the entire account.

 

Can anyone advise me whether to make sure I stay in top few positions in order to maintain a better quality score, or whether to go after the most profitable venture, which is aiming for a lower position as anyway my budget is being reached.

 

Thanks a lot,

 

Merry Christmas.

 

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Accepted by topic author Zevi S
September 2015

Re: Lowering bid to increase profits creates a low quality score

Collaborator ✭ ☆ ☆
# 11
Collaborator ✭ ☆ ☆
Hi,

A small addition to great answers here. Google understands that ads in position 6 have a lower CTR than ad in higher positions , so Google doesn't directly compare the CTR of position 1 with the ad in position 6. Before calculating the quality score , Google normalizes the CTR across positions based on projected CTR at those position to determine how effective your ad is at gathering clicks.

This means that your ad is not penalized for showing in a lower position, and conversely you don’t automatically get a boost when your ad is in higher positions that are expected to always have higher CTR.

View solution in original post

Re: Lowering bid to increase profits creates a low quality score

Explorer ✭ ☆ ☆
# 2
Explorer ✭ ☆ ☆
Hi Zevi,

Higher quality ads can often lead to lower CPCs. That means you pay less per click when your ads are higher quality. Higher quality ads are typically associated with lower first page bid estimates. That means it's easier for your ads to show on the first page of search results when they have high quality components (expected CTR, ad relevance, and landing page experience). Check out this link "https://support.google.com/adwords/answer/2454010?hl=en" it will help you to more understand.

Thanks

Re: Lowering bid to increase profits creates a low quality score

Follower ✭ ✭ ✭
# 3
Follower ✭ ✭ ✭
Thanks Roshan, but that doesnt answer my question.

My ads are high quality. When I bid to be in the top positions, I have a great CTR.
But I use up my budget by the end of the morning.

I want to reduce my CPC my half and be in the lower positions and to remain in the SERPs all day and get more clicks/conversions for my money.

I am just worried that the CTR which will be lower will increase the price of the bid because of a lower quality score.

Re: Lowering bid to increase profits creates a low quality score

Rising Star
# 4
Rising Star
Hi Zevi,

Merry Christmas and welcome to the Community!

You're doing the right thing by bidding high in local areas, to maintain the conversion rate. Speaking of the entire UK, if you aren't worried about the Avg. position but still concerned about CTR, you can set the campaign to Automatic Bidding. In this bidding method, AdWords system wouldn't target any position, but would get you max clicks within the budget, hence maintaining the CTR.

Feel free to write back with questions.

Cheers,
Sumanth
Sumanth Sridhar

Re: Lowering bid to increase profits creates a low quality score

Follower ✭ ✭ ✭
# 5
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Hi there Sumanth,

I just have feeling that AdWords will still be bidding more then I would were I to do it manually.

Something tells me to just go for the lower ad positions and more conversions, and forget about the low CTR and quality score that may arise from that.

Would you generally worry about CTR and quality score if a lower ad position meant more profit for you?

Re: Lowering bid to increase profits creates a low quality score

Explorer ✭ ☆ ☆
# 6
Explorer ✭ ☆ ☆
I would move some of the top performing keywords in their Ad group which I would manage on manual bidding, and simply set manually a lower price every day and follow the impact on impressions / clicks to test for an optimal CPC.

Re: Lowering bid to increase profits creates a low quality score

Rising Star
# 7
Rising Star
Do you mean to say - you're getting conversions in lower ad positions? If so, how is the CTR affected? What ever intermediate metrics you look at, it is conversions or profit that ultimately matters. If you're getting good profit, I'd say go for that.
Sumanth Sridhar

Re: Lowering bid to increase profits creates a low quality score

Follower ✭ ✭ ✭
# 8
Follower ✭ ✭ ✭
Sumanth,

By being in a lower ad position, I get clicked on much less, which lowers my CTR rate and quality score. That doesn't bother me as I still fill up my daily budget.

Was wondering if I should worry about the quality score or go for the maximum profit.

Sound like you say go for the profit

Re: Lowering bid to increase profits creates a low quality score

Top Contributor
# 9
Top Contributor

>>>"The problem is that apparently because lower position have such a terrible CTR, my quality score can be seriously affected. That can apparently raise the price of the UK campaign on position 6 significantly, and also affect the entire account.

 

This is not necessarily  correct. I have seen campaigns which the 4th position (upper right corner) had a better CTR than positions 1-3

 

As for one campaign effecting another: if you use location bid adjustments or target the entire UK in one campaign and a local  area in another  - CTR is also  measured  based on location,

 

To conclude as @Sumanth Sridhar said: if performance are good, don't worry about an ad position.

Moshe, AdWords Top Contributor , Twitter | Linkedin | Community Profile | Ad-Globe
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Re: Lowering bid to increase profits creates a low quality score

Follower ✭ ✭ ✭
# 10
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Moshe, thanks for those important bits of info, although I suspect that by position 7 the CTR does generally drop.

Also very useful knowing the locations don't share CTR.

All in all, the advice seems to be to go for the biggest immediate profit and not to worry that the low CTR/QS will up the CPC too much.

Thanks very much