Quality score for Google and its search network is a dynamic metric assigned to each of your keywords. It's calculated using a variety of factors and measures how relevant your keyword is to your ad group and to a user's search query. The higher a keyword's Quality Score, the lower its cost-per-clicks (CPCs) and the better its ad position.
The basic measure of quality score is your ad relevancy with the keywords and landing page contents. Quality score against a specific ad is used to determine the minimum CPC for an ad. Let us assume that there are 10 advertisers, with each having a different quality score, competing against the same keyword on Google sponsored search listing. If the average bid against a keyword for the top position is £ 2.5 and an advertiser has a quality score of 5 while another has a quality score of 6 then Google will place the ad of the person with higher QS on top.
Why Google does that? It is fairly simple to understand. The primary reason behind establishing a quality score for ad placement in sponsored search is to offer the web surfer with the most relevant and appropriate ad on the top. However, a person with lower QS can still come up in the sponsored rankings by paying a higher price.
Google determines quality score with CTR (Click Through Rate) history, landing page content and keyword relevancy with the ad. For starters, if you want to improve your quality score you must ensure that the target keyword is present once or twice in the ad and the landing page is relevant to your advertised keyword.
If your landing page content is relevant and you offer exactly what you are advertising; your CTR will increase with the passage of time. This CTR is used by Google to determine your quality score. You can get high rankings in sponsored search even if you bid lower as compared to others with a low quality score. Formula for the quality score is:
Quality Score = (keyword’s CTR, keyword relevance, ad text relevance, landing page relevance)*
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