Common Paid Search Questions

What determines where my Google Ad shows?

  • Google Ads uses AdRank in each auction to determine which ads to show and the order in which they’re positioned
  • AdRank is CPC Bid multiplied by Quality Score
  • Ranking factors incentivize search marketers to create relevant, high-quality ads. 
  • In the example below, bidder C would be in the #1 ad position because they have the highest Ad Rank.
Understanding Ad Position in Google Ads

How much do I pay per click?

  • Bidders typically do not pay their max bid in the auction. You pay the minimum amount necessary to retain your ad position, relative to competitors
  • Bidder A CPC = (Bidder B CPC x Bidder B Quality Score) / Bidder A Quality Score 
  • There is a floor for every auction
Google Ads Click Cost Formula
Example of Google Ad Click Cost With Various Bidders

What is quality score?

  • Quality Score metric (1-10) tells you how relevant your keywords are to your ad — and to your landing page
  • A higher Quality Score can lower your bid costs and improve your ad rank in the search results

What determines Quality Score? 

  • Your ad's expected clickthrough rate: measures how likely it is that your ads will get clicked when shown for that keyword 
  • Your ad’s relevance to the search: measures how relevant your ad is to what a person searches for
  • The quality of your landing page: How relevant, transparent, and easy-to-navigate your page is for consumer 

 Need to know Paid Search Definitions:

  • Keywords: These are the words or phrases that searchers type into Google Search, which trigger your ad to appear.  When setting up an ad campaign, you’ll pick a list of keywords that you think people might search for when they want what you have to offer.
  • Bid: This is the maximum amount you’re willing to pay when someone clicks on your ad. (Since, with Google Ads, you don’t pay to show up — only when someone clicks on your ad to visit your site).
  • Quality Score: This metric tells you how relevant your keywords are to your ad — and to your landing page (i.e. the webpage where people will be taken when they click your ad). A good Quality Score can lower your bid costs and improve your ad rank in the search results.
  • Ad Rank: This metric helps determine where your ad will show up, relative to other ads, when it's triggered to appear on Google. Your rank is determined using your bid, your Quality Score, and other factors.
  • CPC: (cost-per-click): The actual amount you pay when someone clicks on your ad. (You don’t necessarily pay your entire bid price for every click — that just sets up a range of possible costs-per-click you might pay.)
  • CTR: (Click Through Rate) A ratio showing how often people who see your ad end up clicking it. CTR can be used to gauge how well your keywords and ads are performing. CTR is the number of clicks that your ad receives divided by the number of times your ad is shown: clicks ÷ impressions = CTR.
  • Impression share (IS) is the percentage of impressions that your ads receive compared to the total number of impressions that your ads could get.
  • Conversion: A conversion takes place when someone who has clicked your ad goes on to take another action you’ve designated as important — like making a purchase, signing up for a newsletter, or calling you.

White Glove Marketing understands how these paid search concepts can positively affect your business. Contact us today for a free consultation.