Everyone that has worked with pay-per-click (PPC) ads knows how competitive the landscape is. PPC is all about jockeying for position, and it’s an endless struggle against your fiercest competitors.
Needless to say, PPC is a cutthroat industry.
If only there was a way to gain some type of advantage…
Actually, Google uses an ad rank formula that’s responsible for advertisers fighting for online placement. Understanding how this ad formula works can provide you with a competitive advantage.
Google’s ad formula is broken up into three different parts:
Honing in on these areas and ensuring they are top quality will undoubtedly help you rank at the top of any search page. Below, you’ll learn all about Google’s ad rank formula and begin putting in the work to outrank your top competitors.
The first area of Google’s ad rank formula we’ll discuss is the CPC of your bids. When you think of an ad position, think of how popularity existed in high school. Everyone wants the top spot, but you’ll have to be willing to pay to get there.
By using Google’s keyword research tool and browsing your own dashboard, you can quickly learn where you rank in relation to the top spot of your chosen keywords. In fact, Google does all of the hard work in telling you how much you’ll need to bid to reach the top spot for a keyword.
Though, sometimes this feature isn’t completely accurate. A general rule of thumb to follow is when you add a new keyword to your dashboard, view the estimate from Google’s dashboard, and round up to the nearest ten to determine your maximum CPC bid.
For example, if Google shows an estimate of $14.26, you should expect to spend at least $20. After a few days of running your campaign, you can start lowering your bid if your ads are doing great and lowering it if they are performing poorly.
The status column will let you know if your bid is below the first page bid. Until you receive any information otherwise, you should place your maximum CPC bid at the amount Google requests to rank on the first page.
Lastly, the average position column on the Google Ads dashboard is where your ads are showing up live. To recap, the first three positions are at the very top of Google search results and are the most likely to be clicked on.
All other positions will fall to the other pages on Google and will likely never be clicked on. This column should help any advertiser let you know when to raise and lower your build. Your choice should be based on where you want your ad to be positioned on Google and the budget you have to spend.
When you are in a very low position, you should double your bid. On the other hand, if your ad is in a top position, you should slowly lower your bid to take advantage of a few extra clicks for your budget. Or, you can use automated bidding.
When you’re new to setting up a Google ads campaign, expect to raise your bid at first to optimize your placement and budget. When you begin to figure out the right budget to achieve your desired placement, you can scale back your spending.
To use another analogy, your campaign’s quality score is similar to being a well-rounded student when it’s time to complete college applications. Your quality score is determined by:
With all of that said, here are some tips to follow to make sure that your campaign has an exceptionally high quality score:
Google offers more than seven extensions to provide more information to your prospects, make your ad take up more room, and improve your ad’s ranking. Extensions can undoubtedly make your ads look better.
In fact, with extensions, your ads can look like this:
You’re free to use as many extensions as you want. This will make it possible for you to showcase multiple sitelinks and CTAs. You can also use extensions to display call and location icons.
Finally, make sure that your sitelink extensions are written in title case to achieve the best presentation, and write callout extensions in sentence case. You also won’t need to use all 25 characters for callout extensions.
It takes a lot of work and tinkering to improve your PPC campaign and turn your budget into a revenue stream. If you don’t have the time or expertise, hiring a PPC agency is definitely in your best interest if you want to lead more people to your website.
At PPC.co, we specialize in running successful campaigns for all kinds of industries. If you want to take your campaign to the next level, contact us today to speak to a member of our team.