How Google AdWords Bidding Works

Getting started using Google AdWords can be really daunting and confusing. Luckily, we’re here to help you out. One of the things people get most confused about is keyword bidding.

What is keyword bidding? 

When ads are set up in Google, you select your keyword phrases. These are the terms that you hope will trigger your ad to be shown at the top of Google. So say you are advertising for personal training and so your keyword would be “personal training.” Here’s an example of how that ad might look.

Google AdWords Example

But say there are 10 other businesses who also want to show ads for personal training in your area. Google only usually has three spots at the top. How do you land in one of those spots? You have to bid for it.

Google AdWords is actually an auction. Your ads get ranked based on two things – the quality score and your bid. The highest ad rank gets the best spot. Note that this does not mean that the highest BID gets the top spot. You have to have a quality ad, a quality landing page, and a solid bid to get that spot. It’s not all about the money.

What is a quality score?

The Quality Score (QS) is Google’s way of rating your ads based on relevance to your keywords and the landing page the ads link to. The higher your quality score, the lower your cost per conversion. You can increase your quality score by having a great ad with effective text, choosing highly relevant keywords, optimizing your landing pages and adding negative keywords.

How do you know how much to bid? 

Google has tools that will help determine what the best bids are for your keywords. It’s different for everyone and a lot of it can vary depending on your field and location. If you are a local business offering services to a specific area without a lot of competition for ads, then your cost will be lower. If you are a personal injury attorney in a big city, then your ads will be more expensive because they are much more competitive. If you sell products nationwide, then your ads will get more competitive because you are competing with the entire country instead of just your local competitors.

It’s complicated.

Google AdWords can be complex and confusing, and that’s why we’re here. They take constant adjustment and tweaking to get them to perfect just right.

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Amy Masson

Amy is the co-owner, developer, and website strategist for Sumy Designs. She's been making websites with WordPress since 2006 and is passionate about making sure websites are as functional as they are beautiful.

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