Inside Google’s AdWords Wars

Securing an ad space for pay-per-click (PPC) marketing isn’t as easy as buying groceries. You have to outbid everyone else. If self-storage has Storage Wars, Google has AdWords Wars.

Prime estate for these types of auctions include insurance, loans, mortgage and attorney – all of which often enlist internet marketing services. Say you want to secure a space for “insurance.” An auction can commence if more than one interested party want the same keyword relevant to the search query. Broad keywords like “insurance” may enter multiple search query auctions.

You may think you have a higher chance of winning with more money. However, this isn’t your usual auction. Having the highest maximum bid is only half the battle; the other half determines how useful your ad is when hosted. It doesn’t matter if you’re the highest bidder; Google hardly favors a bidder with a really ineffective ad.

The product between the maximum bid value and quality score is called the ad rank. You can bid for less as long as the quality of your ad is solid. A $1.00 maximum bid for an ad with a quality score of 10 can win over an $8.00 maximum bid for an ad with a quality score of just 1. This is an advantage to businesses because they may end up paying less for every click.


Posted on April 8, 2014, in Business, Internet Marketing, Online Marketing, Search Engine Optimization and tagged , , . Bookmark the permalink. Leave a comment.

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