Google AdWords - Ad Ranking
Unlike other search engines Google does not simply use a Cost per Click (CPC) system to decide where ads appear. Simple CPC models (such as Yahoo’s) mean that whoever is bidding the most for a search term will appear in position number 1 and so on, often leading to ‘bidding wars’.
Instead, Google adopts an “ad ranking” or ‘cost plus performance’ system, where several factors are taken into account when determining which position ads will appear in. Ensuring your ads perform well will result in paying less to appear in higher positions – the CPC for an ad at no. 1 could be less than a poorly performing ad in position no. 5.
So, to ensure your AdWords campaign runs effectively, follow these simply steps:
1. Keep keywords specific and relevant
2. Maintain a competitive bid
3. Ensure ads relate to keywords
4. Match keywords to landing page content and avoid using Flash or images instead of text
A good Click Through Rate (CTR) should work to reduce your AdWords campaign’s CPC. You will also help ensure the clicks you do receive are relevant, improving your ROI.
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