On Adwords when your Quality Score goes to Great, lets say for example its at great with a min. bid of 0.05 well after time when it goes up to 0.03 or 0.04 does that mean my AdRank improves? And I'd imagine if I was getting killer CTR I could possibly go to 0.02?
It may improve, or it may not. There are two reasons that your minimum bid may improve but not your ranking. 1) A new campaign. The clickthrough rate effect is damped on the minimum bid early on (otherwise, a bad first day could kill your campaign). So if you've got a very high clickthrough rate, the minimum bid will improve gradually over time, even if the clickthrough rate doesn't improve. The damping factor does not, I've been told, apply in the same way with the ranking. 2) Your Minimum Bid could be improving because of changes that don't impact the Ranking Quality Score - such as Google deciding that they like your landing page. But in general, better minimum bids are a reasonable indication of better Ranking Quality Scores. It's certainly very possible to get a £0.01 minimum bid - I have a few accounts where all of the minimum bids are £0.01 and £0.02, and rarely get a minimum bid of more than £0.03 (that said, I don't do affiliate sites etc, which helps - all of the websites I link to do what they advertise).
Custardmike, Appreciate you answering my questions... So are you saying that my bids can just keep dropping and my position move up over time? The reason I'm asking for is becuase there is a competitor affiliate site and there ad is running night and day, so they have to be making money I'm spending 3/4 over what I'm making. My bids did start around ~3-4 dollars now its around 1.50, but it just don't seem like its dropping anymore? I know my ad is good I'm positive on that plus I have been a/b testing, what would your recommedations be? I mean do campaign generally start profiting right off the bat or does it take time on building your ad rank up by spending then clicks will keep getting cheaper for them same positions see what I'm saying?
Over time, by improving your clickthrough rate, you can improve your Quality Score, but it'll get harder and harder over time (since you're trying to beat better and better adverts). The other thing that you can do is look at improving your website - to improve the conversion rate. The more likely a click is to convert, the more you can afford to pay for it.
True... Let me ask you this how long does ti take your bids to drop down. Say for example my Ad is performing better then everyone else's at all time how long will it take my cost to drop lower, see what I'm saying? For example say my ad is doing 3 percent CTR all other ads are doing 2 percent, but there paying 20 cents a click and I'm paying 1.50 a click how long would it take my bids to drop down or at least my ad to move up? The reason I ask that for is because I know what another site is performing at I found it out on accident, but there paying 5* less then me and they haev a bit lower CTR, but there ad has been running for awhile.
I think its a hidden mantra. Aim for high CTR when you initially start a campaign... though you might lose money and then slowly cut down bids.
thats what I've been doing, but I know for a fact one of the advertiser on the front page is getting a bit lower ctr then us and were getting a higher CTR then them, but yet were paying 5 times as much as them. Which granted I do have a new account, but I have been running this campaign on and off for ~3 months now and have put around 2,500 into it.