CPC and Quality Score by Position?

Discussion in 'Google AdWords' started by tdd1984, May 3, 2008.

  1. #1
    Quick questions guys is the QS and CPC cost determined by the position?

    For example say I'm performing better in position 3-5 then advertiser 2 will my CPC be cheaper? I think this falls into the category of position normalization which I know i'll have more impressions in that position with less click through rate, but I think overall them position are better because for position 3 I'm paying 75 percent cheaper then what I am in position 1.
     
    tdd1984, May 3, 2008 IP
  2. Nav19

    Nav19 Peon

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    #2
    My best advice would be to review AdWords Support...Always Check Here First.

    For example say I'm performing better in position 3-5 then advertiser 2 will my CPC be cheaper?

    If you have a higher CTR/QS at position 3 than your competitor at position 2, why wouldn't your CPC be less? Google will reward you for for your CTR/QS but having a lower CPC at a higher position. Google always wants to received as many clicks as possible per ad. So higher CTR = More clicks = More Google $$$$$$.

    That's my experience. =)

    Cheers
     
    Nav19, May 4, 2008 IP
  3. wwwbug

    wwwbug Peon

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    #3
    things determin your QS and CPC:
    1.related keywords
    2.related landing page
    3.related ad text
    4.the position
    5.the competitors
    6.ctr
     
    wwwbug, May 4, 2008 IP
  4. CustardMite

    CustardMite Peon

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    #4
    Basically, all other things being equal (1,2,3 and 5 from the above), if you get the same (or higher) ctr than your competitor from a lower position, your QS will be higher.
     
    CustardMite, May 6, 2008 IP
  5. tdd1984

    tdd1984 Well-Known Member

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    #5
    Well the problem is all my QS scores are reading great, but for some reason my CPC cost is still extremely high it don't make any sense to me and I know other people have to be making money from promoting the same thing I am. I'd imagine my CPC cost is so high because its a new accout because my QS is great across the board for all positions.
     
    tdd1984, May 6, 2008 IP
  6. CustardMite

    CustardMite Peon

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    #6
    Your account age will have some impact on your minimum bid, though not your ranking.

    Unless your competitors have a better Quality Score than you, they must be bidding more than you...
     
    CustardMite, May 6, 2008 IP
  7. tdd1984

    tdd1984 Well-Known Member

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    #7
    No they are probably paying 5 times less then I am with the same quality score believe me I know becuase I figured out what I would have to be spending to be into a profit state. Plus I just don't they have to be spending way less then me because there ads are running 24/7 and there promoting the same products, so therefore they have to be making money. It only makes sense to why there letting there ads run 24/7
     
    tdd1984, May 6, 2008 IP
  8. CustardMite

    CustardMite Peon

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    #8
    If they are paying less than you, and their Ranking Quality Score is lower than yours, their advert will appear below yours.

    If their adverts appear above you, and their bids are lower than yours, then their Ranking Quality Score must be better than yours - from what you're saying, five times better than yours.

    What position does your advert average, and what's your clickthrough rate?
     
    CustardMite, May 7, 2008 IP
  9. tdd1984

    tdd1984 Well-Known Member

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    #9
    Dude trust me its good I know it is. I just know plus all my QS scores are GREAT across the board. It has to be because they've been spending more at a longer period time and my account is actually 3 months old of today.

    I mean what else could it be because my CPC seems to be going down, but very slow its like I have to spend 500 bucks to get it to drop another another 1/8 or 1/4 know what I mean?
     
    tdd1984, May 7, 2008 IP
  10. CustardMite

    CustardMite Peon

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    #10
    The account age has no bearing on the Ranking Quality Score. It only impacts the Minimum Bid. Your ranking is based on your Ranking Quality Score and your bid.

    Just because you have a Great MBQS, that doesn't necessarily mean that your RQS is Great. They are seperate calculations, and whilst some of the inputs are the same, that doesn't mean that the result is the same - if it was, they wouldn't bother with two Quality Scores...

    http://adwords.google.com/support/bin/answer.py?answer=10215
     
    CustardMite, May 8, 2008 IP
  11. tdd1984

    tdd1984 Well-Known Member

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    #11
    Well let me ask you this what is your background with adwords are you using and making 10 of thousand's of dollars?

    Actually I exchanged some consulting session with a pretty well known affiliate which was organic search for PPC that was the exchange. He told me new accounts always perform badly and then at an affiliate Summit meeting they had some of the AdWords rep speaking and they said it can take 4 months to get a new account to a decent spending limit.

    They also said on new accounts for the first 3 months you could be paying 50-60 percent higher then what your competitors are just for having a new account.

    I'm pretty sure that's what it is because my QS is great across the board and my ad always starts to move up for example at first I started out with very high bids and I was always averaging a position of 3-7 then after I threw a couple k into my account all my position were averaging 1-3, but at the same time paying less.

    Well I bidded down and went back to position 3-7, now it seems like the more money I put into it my ads are recycling the same process. So in other words what I'm saying it only makes sense you see where I'm coming from?

    Kind of like the adrank is improving over time because if it wasn't why would my ad keep moving up every time I bid down? This has to be because of the new account issue that Google there self and many super affiliate have talked about.

    Also what was you referring to when you mentioned RQS and MBQS?
     
    tdd1984, May 8, 2008 IP
  12. ChrisStigson

    ChrisStigson Peon

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    #12
    Just set it to "I always want to appear in position x if I can" and I'll pay x to be there with this QS...Get me there or don't show my ads... You can do that, but also, they may have some kind of backend that you don't?

    More often than not experts are breaking even when it comes to adwords and then make it all back in the backend... like today I spend $1 for 8 leads and 1 sale + backend sale... that's just what good advertisers do..

    "We" also upsell you on $147 course, no? Alright $497 mini-coaching? No? Alright, $2999 seminar? Yes.. Sweet noww I can advertise for another month totally free!

    - Chris
     
    ChrisStigson, May 8, 2008 IP
  13. CustardMite

    CustardMite Peon

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    #13
    I manage PPC accounts for a living, and head up a team of PPC analysts. The accounts that we manage make a damn site more than tens of thousands of dollars...



    The amount of money that you've credited to your account will have no bearing whatsoever on your advert position.


    Sorry - Minimum Bid Quality Score (the Quality Score that you can see) and Ranking Quality Score (you can't see it, but it determines your advert's position, along with your bid).

    I'd strongly recommend that you read everything you can on Google's guides before committing thousands of dollars to your campaign.

    http://www.google.com/adwords/learningcenter/
    http://adwords.google.com/support/
     
    CustardMite, May 9, 2008 IP
  14. AdWords-Advice

    AdWords-Advice Active Member

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    #14
    How close is the relationship between the MBQS and RQS? do we think there is a different algorithm for each?

    The way I have always understood this to work is

    RQS - physical score of the keyword within a campaign e.g. 2.3

    MBQS - a banding structure for RQS e.g. keywords between 1-3 are OK, 3+ are great etc

    Am I wrong with this?
     
    AdWords-Advice, May 9, 2008 IP
  15. CustardMite

    CustardMite Peon

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    #15
    They are certainly different algorithms:

    http://adwords.google.com/support/bin/answer.py?answer=10215

    Examples of the differences would be:

    MBQS doesn't look at the advert's clickthrough rate, only the keyword's clickthrough rate.
    RQS looks at the similarity between the search query and the keyword.
    MBQS looks at landing page quality.

    The other, undefined 'other factors' are probably different as well.

    So, for example, having a lot of broad-matched keywords may not hurt your minimum bid much, but if most of your impressions are coming from the broad matches, then your ranking quality score may suffer.

    Basically, the RQS depends on the advert and search query, whereas the MBQS just looks at the overall CTR for the adverts, and the exact match version of the keyword.
     
    CustardMite, May 9, 2008 IP
  16. tdd1984

    tdd1984 Well-Known Member

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    #16
    CustardMike,

    I have read the guide I have been doing search engine optimization for awhile now (my company has been recommended by the most well known figures in the web 2.0 sphere).

    And honestly I would have to disagree with you on spending becuase spending is the single biggest factor into getting cost down. Actually Shoemoney was the one that told me that and I've noticed the more I have been spending my cost keep dropping (huge time).

    I was paying around 3.50 a click now I'm down to 1.00-1.50 a click and my ads keeping moving up as time goes by then I keep dropping my bids down.
     
    tdd1984, May 9, 2008 IP