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Quality score has gone up, but so has cost per click?

Visitor ✭ ✭ ✭
# 1
Visitor ✭ ✭ ✭

Hi all,

 

My campaign is for quite a niche industry - pharmaceutical products. I had some problems at the start of the campaign with relevancy and my quality scores were quite low. I then reorganised the campaign about three weeks ago to smaller and more targeted ad groups with keywords specifically targeted to the appropriate ad, and then directed to the accurate landing page.

 

As a result my quality scores have gone up significantly - which is great! However so has my CPC! Can anyone offer any advice on why this has happened and what I can do to correct it - I was under the impression that a higher quality score would lead to a lower CPC!!

 

Many Thanks!

2 Expert replyverified_user

Re: Quality score has gone up, but so has cost per click?

Top Contributor
# 2
Top Contributor

Hi Dominic;

Two reasons I could think of:

The new keywords have a higher average CPC;

Your competitor's noticed that you are advertising and higher their bid..

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: Quality score has gone up, but so has cost per click?

Visitor ✭ ✭ ✭
# 3
Visitor ✭ ✭ ✭
Hi MosheTLV,

Thanks for your reply!
I haven't actually added new keywords, just assigned our old ones to more specific ads and landing pages, so I can't figure out why their cost would have risen?

Re: Quality score has gone up, but so has cost per click?

Top Contributor
# 4
Top Contributor

Hi Dominic, what's the average position of your Ads?  If their position is anything lower than 1.0, then an increase in CPC following an increase in QS is actually quite normal and expected, here's why:

 

Let's say you have a Max CPC of $5.  If your QS is 6/10, your effective CPC is $3 because QS directly affects CPC.  (It's not quite as simple as just multiplying the score by the CPC, but it's close enough).  Let's also assume your max. bids of $3 get you an average position of 4.3 and your average CPC is around $2.80.  If you increase your QS to 9/10, your effective CPC becomes $4.50 and this means your average position should rise and you'll be paying more per click, because you're actually bidding a larger amount and winning those higher positions (and, depending upon the circumstances, actually ranking in more auctions in total than before).

 

It's true to say an increase in QS will reduce CPCs, but only for the same Ad rank in the same auction. 

 

So, if you are targeting position #3.0, say, and you have a QS of 6, increasing your QS should allow you to average position #3 at a lower CPC, but if you're not controlling your position, increasing your QS will just result in a higher bid and a higher position.

 

Does this make sense?

 

Jon

AdWords Top Contributor Google+ Profile | Partner Profile | AdWords Audits

Re: Quality score has gone up, but so has cost per click?

Top Contributor
# 5
Top Contributor

Jon;  @Jon_Gritton 

I might  be missing something here... Smiley Surprised

How did you get to the conclusion that the avg.  position has changed significantly? (The OP did not mention that...)

The abnormality he described, my understanding,  was higher QS  after optimization (probably due to the more tightly themed keywords and revised ad-copy), but no significant change in avg. position.

 

 

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: Quality score has gone up, but so has cost per click?

Explorer ✭ ✭ ✭
# 6
Explorer ✭ ✭ ✭

Hi Dominic,

 

I'm glad that you have increased your Quality Score successfully. 

 

What might have happened?

 

When you are tightly grouping your campaign with closely related keywords and ad groups, more relevancy results in higher Quality Score. Since you haven't changed the keywords, after optimization, the only possible way is the CPC of the keyword targeting is been increased by other competing advertisers. 

 

What you can do now to achieve success through AdWords?

 

1. To get the most out of your budget, I would recommend not to go for any broad matched keywords. You can use broad match modifier or phrase match keywords.

2. Try adding less competitive and highly relevant long-tail keywords used by your target audience.

3. Refine Geo-Targeting based on the historical performance of campaigns

 

Thanks!

 

 

Marked as Best Answer.
Solution
Accepted by MosheTLV (Top Contributor)
September 2015

Re: Quality score has gone up, but so has cost per click?

Top Contributor
# 7
Top Contributor

@MosheTLV I don't know that the average position has increased, which is why I asked the question in the first part of my answer, however if QS has gone up and the max CPC has remained the same, then unless the average position was already #1.0 then it really must have gone up.  The anomaly, from my reading, is that CPC has increased, whereas the OP expected it to drop.  The only logical explanation for an increase in CPC following an increase in QS is a higher average position (assuming external factors such as competitor bidding haven't changed).

 

Jon

AdWords Top Contributor Google+ Profile | Partner Profile | AdWords Audits