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How To Save Half Your AdWords Costs

Why are quality scores important, and why should you care about them? Because Quality Score can guarantee the success of your campaign, or fully integrate it.

Background

Why do Quality Levels exist?

Google’s business is based on providing good and relevant search results (as well as ads) to seekers. Before the Quality Score system, it was possible to increase your keyword bids so much that you could have shown your ad on placements with unrelated keywords. Google is not interested in serving credit card ads when you apply to a florist. If Google doesn’t provide good search results, users will switch to other search engines. Therefore, there are quality scores.

If your keywords, ads, and landing pages don’t all have the same theme, your Quality Scores will be low and you’ll pay more for clicks (up to 400% more), and if your Quality Scores are low enough (1-2 ), your ads will not show for that keyword.

So what are those quality levels?

Therefore, Quality Score is an estimate, created by Google, of how well your keywords, ads, and site themes match. Quality Scores can range from 1 to 10 for a keyword, with 10 being the best.

Quality levels are based on the following factors:

  • Click Through Rate (CTR)
  • Keyword and ad compatibility
  • Landing page quality and compatibility
  • The performance history of your AdWords account

The most important of these factors is click-through rate (CTR), which quickly tells you whether users see that ad and the keyword in question as relevant. When you search for “Best restaurant in town,” you barely click on an ad that talks about a tire change, so the click-through rate already tells you if the ad is a good search result for that search phrase.

Why should you be interested in the quality level?

With high quality levels, you accomplish two things:

  • Your clicks cost less
  • Your ads will show higher

So, the higher your Quality Score, the better Google believes it will meet the needs of its users, and the less it will pay for clicks on your ads.

Wordstream on Larry Kimmade the following table for the quality level

Quality level Price Impact
10 Calculate your expenses by 50.00%
9 Calculate your expenses at 44.20%
8 Calculate your costs at 37.50%
7 Calculate your expenses by 28.60%
6 Increase your expenses by 16.70%
5 google zero
4 Increase your expenses by 25.00%
3 Increase your expenses by 67.30%
two Increase your expenses by 150.00%
1 Increase your expenses by 400.00%

You can quickly see how much of an impact Quality Score has on your CPCs and your entire campaign.

Example.

We have two e-commerce operators, Jukka and Matti.

Both advertisers have a 1% eCommerce conversion rate, which means that one in 100 customers buys a product from the store.

It is also assumed that the price of a click is 1 euro if the Quality Score is 5, which is Google’s zero.

Jukka and Matti sell the same product, their goal is to sell 1,000 products during the year:

Jukka manages to increase his quality score from 5 to 8:

  • In this case, the price of a transaction is 100 x (1e x (100% – 37.5%) = €62.5
  • Jukka can sell a thousand products for 1,000 x €62.50 = €62,500

Matti’s quality level decreases from 5 to 4:

  • In this case, the price of a transaction is 100 x (1e x 1.25) = €125
  • Matti can sell a thousand products for 1,000 x €125 = €125,000

Thus, with the help of quality points, Jukka saves €62,500 per year, that is, HALF of his Adwords budget!

So is it worth advertising Google Adwords high qualitywith the highest quality scores.

Let’s see how we can increase those Quality Scores next week to save big on your advertising budget.

If you’d like to know your AdWords account’s Quality Score, please contact us and we’ll review the situation.

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