How the Adwords Auction Works

Google’s secret sauce for Pay Per Click/Adwords.

Adwords is often misunderstood.  Clients and advertisers think that just throwing the most money or setting the highest bid will get them to the top of the search results page.  Nothing could be farther from the truth as Google Chief Economist, Hal Varian explains in this video.

Google’s formula for determining Ad Rank rewards advertisers that design relative ads, have high quality keyword scores and provide an excellent landing page experience for the user.  Knowing how to get the highest Ad Rank takes experience and a keen understanding of what Google values and knows will provide the highest satisfaction for searchers and the most value for advertisers.

News Flash – You can’t buy your way to the top of Google!  Many people call me and say I’m spending way too much money for Adwords and I’m still not #1.  Why?!?!?  Well, even though you are paying, Google wants your ads and landing pages to provide users with what they are looking for with no clutter or ambiguity.  And there’s a reward if you do it right.

Pay Less, Get Higher – It is totally possible to actually pay less than the highest bidder in an Adwords auction and have a higher position than your competitors.  How you ask?

1.  Make sure your keyword is included in the text of your ad.  So if you are selling dog food, make sure your keyword “dog food” appears in the ad copy.

Example:

Premium Quality Dog Food

The Best Food For Your Best Friend

See Nutritional Details and Videos Now.

www.PetFoods.com

 

2. Increase your keyword Quality Scores. Hal explains it beautifully in the video.

 

3. Make sure the landing page you are linking to your ad provides information about the service or product that relates to your keyword.  Don’t make the classic mistake of putting your home page as the destination URL.  Using the previous example above, make sure your ad’s destination URL is that of the page on your site that specifically is about “dog food”.  Don’t send them to the main home page, www.petfoods.com.  Take them directly to the “dog food” page.  And make sure this page has all the information about the nutrition, quality, etc. of the dog food which you are offering.  This page must have original and compelling relative content so that the user finds value in staying on the page and placing and order or calling your company.

If you have any questions about how to optimize your Ad Rank, please contact me.

Carlos Garcia

Google Partner, Miami, FL

 

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