How Google Calculates Quality of Your Ad

Welcome back everyone!
In this article we are going to study about the parameters Google studies about your ad to rank in competitively in the advertising market, to make it rank higher or more often than other advertisers' ads. Surely you didn't assume that you were the only advertiser in the market, did you?

To make it clear in a sentence, I'd say higher quality ads can not only be triggered to show more often (making it gain more impressions) or be shown on quality pages like towards the first search page of a user's search results, it can also help you save your budget by making you pay less for your impressions. How is that done? Take a look at the video below.




Now that you have a positive understanding of what we are talking about from the above video, let us go over it comprehensively.

To give you a better understanding of how ad quality works on AdWords, we'll go over Quality Score and Ad Rank.

• The Quality Score reported in your account is an estimate of the quality of your ads and landing pages triggered by that keyword in auctions throughout the day.
• Ad Rank determines the order in which your ad shows up on the page (also known as ad position).

Let us go more into each of these in detail below.

Quality Score

The components of Quality Score are 

• Expected Clickthrough Rate (CTR): The number of times Google expects your ad to be clicked by the user for that keyword irrespective of any other parameter.
• Ad Relevance: A measure that indicates how close are your keywords to your ad's theme.
• Landing Page Experience: refers to how good we think someone's experience will be when they get to your landing page (the webpage they end up on after clicking your ad).

Further even your ad's keywords get ranked too! Each keyword gets a Quality Score on a scale from 1 to 10, where 1 is the lowest score and 10 is the highest.

Why does your ad quality matter?

The more relevant your ads and landing pages are to the user, the more likely it is that you'll have a higher Quality Score and benefit from having higher quality components of your Ad Rank, such as a higher ad position or lower cost-per-click (CPC). 

Keep in mind that Quality Score is intended to give you a general sense of the quality of your ads, but doesn't take into account any auction-time factors, such as someone's actual search terms, type of device, language preference, location, or the time of day.

Ad Rank, however, does take into account auction-time factors and determines where your ad appears on the page or whether it appears at all. Every time one of your ads competes in the auction, AdWords calculates your Ad Rank using your bid amount, the components of Quality Score (expected CTR, ad relevance, and landing page experience), and the expected impact of extensions and other ad formats. 

Does this mean that a higher bid can always lead to a higher ad position? No. Even if your competition has higher bids than yours, you can still win a higher ad position at a lower price by using highly relevant keywords, ads, and ad extensions.

With this we end this lesson here. I hope you understood this lesson because it'll prove to be a very important lesson for the future. Goodbye! :)