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Call 1-888-683-1144 for PPC Management Services |
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Catch More Flies in Your Web |
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How Much You Pay When Ads Are Clicked |
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As seen in How Does Adwords Rank Ads, Adwords is not a simple auction. Both your bid and your adīs quality are used. Hardly any search engine ranks ads from the one bidding the most to the least. In fact, I know of no search engine that does this anymore, the last major one being Yahoo when they were still known as Overture. Your actual costs too when your ads are clicked are not straight forward. It used to be that you would pay one cent more than the advertiser directly below you. In other words, if the advertiser below you was bidding $0.25, you would pay $0.26. But that is not how it is done anymore and hasnīt for many years. Google has even published their formula: Cost = AdRank(b) / QS(a) AdRank(b) is the ad rank calculation of the advertiser immediately below you. Keep in mind that the adrank calculation is their QS times their bid. QS(a) is your own quality score. So the extended formula is really: Cost = QS(b) x Bid(b) / QS(a) If both quality scores are the same, they cancel each other out meaning you end up paying your competitor's bid, if it is equal or below your own bid. This never happens in practice but that is the principle. Remember that Google calculates QS to many decimal points. So increase your QS, all other things being equal, you will reduce your costs. As QS is not related to your bid but to your CTR, the way to increase your QS is to create better ads. I show and have an explanation of how different bids and QS affect your ranking and costs. |
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Pay per click management services relieve you of that burden so you can concentrate on your business. Affordable prices. Call us to see what we can do for you. |
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