Every time a search is made on Google an auction takes place to determine the ads that show and their rank. This auction system is called AdWords. By bidding on keywords relevant to your business, you capture clicks from folks who you know are in a position to buy. They became aware of a need, typed a search into Google, and clicked your ad - they've arrived at your site with high intent to take action.
There's more to AdWords than choosing keywords and writing ads. In fact AdWords is much more than just Google search ads. There's also graphic display ads, YouTube video ads and in-app mobile ads whose auctions you can also participate in to be seen across the web.
The biggest misconception about the AdWords auction though is that your ad's position in search results is determined solely by what you bid, that is, if you bid higher, your ad will show up higher. That’s only partially true. First, understand that Google’s ad auction has to reconcile the interest of three parties:
So to keep everyone happy and coming back to Google, where an ad shows up is determined not only by what you’re willing to bid but also your ad’s quality - meaning its historical click-through rate and the relevancy of the ad copy and landing page to the keyword. Google combines these factors to produce a 1-10 Quality Score for each keyword, which they take into account along with your bid, when deciding where to show your ad.
Our objective is to get your quality scores as high as possible so you appear higher in search results and pay less per customer acquired.
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