We often come across business owners and clients who are new to AdWords and they often have a difficult time understanding how Google decides in what position their ads will show up in. They can quickly grasp that they have to pay for each click on their ads and that it’s largely an auction model, so the higher you bid, the better positioned your ads are. But when we start explaining how Google also factors in a quality score that is based on the relevancy of their keywords, ads and landing pages along with the CTR (Click-Through Rate) most people have a hard time following because of the multiple variables at play.
We’ve recently come across an excellent Video by Hal Varian – the chief economist at Google where he visually explains how an advertiser’s quality scores and bids affect their ad positions. After watching this video most people will understand what the AdWords quality score is and how it affects their ad positions and campaign performance. I highly recommend you check it out for yourself:
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