Business owner or marketer – You need to know one thing about Google ads.
Google is making money through advertisement, So if you pay more Google will show your ads on the top of the result.
And Google has one advantage, Google will charge you less if you write excellent ads and you have highly valuable content on your website.
So business owners or marketers need to focus on how we can rank our ads on the top of the page with less amount spent.
The Key here is “bidding”.
Based on bidding google will charge your ads. You can calculate the right bid for your industry before creating your ads.
Now every keyword has different bidding. You can identify the top page bid and bottom page bid in Google keyword planner. After getting this top page bid and bottom page bid you will come to know which will be the best price to bid by comparing with your “calculate right bid tool”.
To understand this you have to know about how google ad rank works.
Google ad rank formula = Quality score * Bidding
Example:
You Bidding = 82Rs. or 1$ & Quality score = 9
Sam(competitor 1) Bidding = 164Rs. or 2$ & Quality score = 2
Philip(competitor 2) Bidding = 100Rs. or 1.2$ & Quality score = 3
Your ad rank = 738 or 9
Sam ad rank = 328 or 4
Philip ad rank = 300 or 3.6
So even though you have less bid you will be the winner of the auction!
If Philip or Sam whats to beat you they have to improve their quality score or they have to spend more.
Pro tip: This formula is not standard, there is one more factor considered by google is the context of people’s searches(Location, time, search terms, device, and more).
I know your next question is “how to improve the quality score”.
If you have more doubt email – with@philipdevaraj.com