Let’s now look at the factors that affect the quality score of google ads and in more detail CTR, Click-Through Rate.Suppose that an ad appears 100 times to various users doing a search. And let’s also assume that for every five of these appearances someone clicked on this ad. In this case, we can say that the frequency of clicks is five percent and that the CTR is also five percent. The better your ad is with respect to what the user is looking for, the higher CTR will be.
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Typically, anything greater than a CTR of 1.5 is considered good. However, this is a general rule and not always applicable to all categories and markets. Also, when an advertisement appears in the first position, it will have a greater CTR than if it appears second or last. This is something that Google is well aware of, and has taken account of in its calculations.
Ad Relevance- Quality score of google ads
The more our advertisement responds to what the user is looking for, the better ad relevance it has. One way to achieve this is to include the keyword in the text and in the title of our advertising. Furthermore, we can put it in the display URL and the URL that is to be displayed in our advertising. For example, in the advertisement below, we see that the URL contains the keyword of our search, which is ‘sneakers’.
There are three classifications of Ad Relevance:below average, average, above average. If we are in the average or above average category, then this means that there are no significant problems with our advertising. On the contrary, if our score is below average, we will probably need to change something.
Usually, an advertisement is in the below average rating when it’s too general or when it targets too many different keywords. In this case, it is better that we make more ad groups, each of them targeting less and more specific keywords. For example, it’s good to have different ads and perhaps ad groups for the keywords ‘shoes’, ‘women’s shoes’ and ‘men’s shoes’.
Caution. It is possible that a keyword has a high Quality Score and a low Ad Relevance or vice versa. The reason is that AdWords, as we have explained, takes into account various factors to determine the Quality Score. Even if we have a high Quality Score, we need the Ad Relevance to be at least average, in order to achieve the results we want. Part of creating a successful ad is making sure the landing page experience is helpful and interesting to the visitor.
It must also naturally be relevant to the ad that the user has clicked. Just as we should not have the same ad text for all keywords, we should also not have the same landing page for all our ads. On the contrary, keyword, ad text, and landing pages should be perfectly aligned.
We must make sure that our visitors feel that each step of their journey on our site is clear and the online experience we provide is smooth and flawless. A good method of doing so is to use the text of the ad as the title of our landing page. In a way, whoever clicks on our ad will immediately know that she has landed on the right place and not be confused.
If the landing page is related to the search term, is of good quality, has original content, has corporate transparency, easy navigation, loads fast, and has no technical issues, then Google would assess that this will provide a good user experience.
But why is the Quality Score of our google ads such a big deal?
The first reason has to do with the cost of our advertising. As we have already explained, if our ad is to appear first on the results page, a high bid is not enough. Equally important is its Quality Score. This means that if we have a good Quality Score, we’ll pay less per click than our competitors.
However, this does not only apply for the first ad position. Even if we appear in second or third place in the search engine results page, we will pay much less for each click if we have a high Quality Score.
The second reason Quality Score is important is the Return on Investment (ROI) that our ads have. An ad that has a high Quality Score is usually a carefully constructed advertisement. This means it is addressed to the right people in the right way and gives the right message. Therefore, bringing more quality prospects and customers.
When someone makes an online purchase, it’s very important for us to be able to check where these sales come from. Google Analytics can help us with this. And in addition, we can also use the conversion tracking tools that AdWords provides. When someone clicks on one of our ads, Google places a cookie on the user’s browser.
Through this cookie, it can follow the path the user took inside our site,and see what happened after the click on our ad. For example, if someone bought a product, if they made a reservation, if they registered for our seminar, etc. In order to use conversion tracking, we need to place some codes on the page that appears after the user makes a purchase or registration, such as a thank-you page. To find this code, we go to the tools option in AdWords and select Conversions. The conversions for our site are counted in two ways:
1-per-click and many-per-click.
The 1-per-click estimates one conversion for each click on your AdWords ad that leads to a sale or desired action. This means that if more than one desired action happens after clicking on our ad, it would only calculate the first of these. This specific method is usually used in cases where we want to make the visit of our page do one thing.
For example, use the contact form to register for our newsletter, or buy our product if we sell only one product or service. The many-per-click counts more than one conversion or other desirable actions.
For example, if you have an online store and customers often buy more than one product at a time, it makes sense to use the many-per-click option.
Why is conversion tracking useful?
This answer is simple and complex at the same time. The simple part of the answer is that the conversion tracking allows us to connect each ad and keyword with our goals.
To see which ads and which keywords are bringing not just clicks, but actually realize sales to our business. We can also see which of the keywords we track and bid on give more return on our investment. In this way, we can invest more in the keywords driving the most sales, and thus maximize our profits. As mentioned, this is the simple and obvious reason for using conversion tracking.
Google also allows us to optimize how our ads appear, in order to maximize our sales. This is referred to as the Conversion Optimizer.
What makes the Conversion Optimizer a particularly important tool is that it can adjust our campaign in such a way to create our sales as much as possible. Instead of the sales focusing on clicks (CPC) or impressions (CPM), the Conversion Optimizer focuses on maximizing conversions. With the Conversion Optimizer, you can define either maximum cost per sale (maximum cost per acquisition), to pay for each conversion, or a target cost per customer (CPA-target), which is the average amount we will pay per conversion.
To work properly, the Conversion Optimizer uses the history of each campaign as a benchmark, in order to understand what kind of clicks bring conversions and sales.
That is why it was necessary until recently, to have at least 15 successful sales conversions in the last 30 days in our AdWords account before we could activate the Conversion Optimizer tool.
Cost Per Click (CPC)
Looking at the account’s history, the tool automatically detects the optimal Cost Per Click (CPC) for your ad each time the ad appears. Although the charge is still based on the clicks, the rate at which our ads are displayed is such as to ensure that we get the sales we want without exceeding the amount that we have set as a limit on how much these sales will cost us. Taking into account the background of each campaign, our Conversion Optimizer tool proposes a maximum CPA bid and a recommended target CPA-offer to give us a suggestion on the amount we should spend on each sale conversion.
If these amounts are not far from those we would be willing to pay to sell a product, we may want to use them. Even if the cost is somewhat larger than anticipated, it is recommended to use them in order to allow Google to gather more information about what works and what does not. Thereby, increasing the data available to the Conversion Optimizer tool and enabling us to achieve better results in the future. Then, based on the results of each ad, we can either increase or decrease the amount the tool suggests.
At first, the user of the Conversion Optimizer must invest some money to allow it to collect as much data as possible. Even if the far sales do not bring the desired profit we are hoping for, we should consider it as an investment that will give this tool the chance to work in the best way possible for your business.
Whilst the test phase, i.e., testing the tool for your business, is completed and you have settled to a specific amount as your CPA, do not change it more frequently than once every few weeks. The Conversion Optimizer tool takes time to adapt to the new amounts you enter. And any changes will significantly reduce performance. The use of the Conversion Optimizer tool should under no circumstances be placed as an excuse for not having a good Quality Score, and generally not having optimized ads.
The Conversion Optimizer tool works with the data that you give it. For example, the landing page for a specific keyword, the text to be including in your ad, and so on. If the data that you give the tool is of poor quality, then the results that the Conversion Optimizer brings will be just as poor, as if you had uploaded these ads manually. In other words, garbage in, garbage out.
Thus, you’ll be paying more per sale than if you had created better ads. So, ensure that all the data you feed to the Conversion Optimizer tool is of high quality. Chances are that you will see changes in the performance of your ads when using this tool.
There is never anything static within paid advertisements. This is partly due to the fact that the environment of AdWords is dynamic. Firstly, the consumer preferences are always changing, with no products and trends being introduced constantly in the market. Secondly, every day there are new competitors coming in and out. This changing landscape therefore changes the performance of your ads regularly.
It’s advised to use the Conversion Optimizer tool after you have completed setting up your campaign in AdWords, having decided the keywords that you’re going to target, the text of each ad, and after ensuring that the ad groups that you created are the right ones.
If you make major changes, such as removing ad groups and replacing them with others, while using Conversion Optimizer, you’ll most likely see negative changes in your ad’s performance. Once the campaign begins, that is, of course, always tweaking to do. But once we start using the Conversion Optimizer tool, it is advisable to reduce changes to a minimum. Otherwise, it may take months to see the results we want.
Always compare the performance of the Conversion Optimizer tool with the results you had before activating it. Thus, you’ll be able to understand whether the tool is increasing your business profits. Since the Conversion Optimizer cost is based on the sales it brings, it is unadvisable or just plain stupid to have budget restrictions when using it. You should always have the budget set at more than it can spend, and make sure that this budget is never depleted or exhausted.
After all, the more we spend, the more sales we have. And because we have already determined how much we want to pay for each sale, it is foolish to put restrictions on the budget of our advertising. If we do this, we are putting limits on our profits. you will see fluctuations in the performance of each ad. This is normal and expected.
In order to form a complete picture of how this function affects our sales, it will take some time to compile data that can be used to get a full understanding of the tool’s performance. As we mentioned, to enable the Conversion Optimizer tool, there was a restriction of at least 15 conversions in 30 days. Even though this is not the case anymore, it is strongly advised to have at least 50 or, even better, 100 conversions, before you start using it.