Ads Basic Terms Flashcards
Bid
You’re telling Google Ads the maximum amount you’re willing to pay for a click on your ad. You often actually end up paying less, and you can change your bid at any time
Ad rank threshold
high-quality ads -> minimum quality thresholds that an ad must achieve to show in a particular ad position.
Context of Query
When calculating Ad Rank, we look at:
1 the search terms the person has entered
2 the person’s location at the time of the search
3 the type of device they’re using (e.g., mobile or desktop), the time of the search
4 the nature of the search terms
5 other ads and search results
6 and other user signals and attributes.
Ad extensions impact
When you create your ad, you have the option to add extra information to your ad, such as a phone number, or more links to specific pages on your site. These are called ad extensions.
Google Ads estimates how extensions and other ad formats you use will impact your ad’s performance.
Auction-time ad quality/ Quality Score
how relevant & useful your ad & the website it links to are to the person who’ll see it.
Determining Ad Position
1) Ad extension impact
2) Auction-time quality ad
3) Context of query
4) Bid
5) Ad rank threshold
three main factors that determine the quality of an ad
1) Expected clickthrough rate
2) Ad landing page experience (Relevant, transparent about data use and business, easy to use, great content)
3) Ad relevance - how well an ad matches what the user is searching for,
Quality Score
estimate of the quality of your ads, keywords, and landing pages. Higher-quality ads can lead to lower prices and better ad positions. Quality score is composed of expected clickthrough rate, ad relevance, and landing page experience.
Improve CTR
- Include keywords in your ad text (especially in the headline) to show people that your ad is directly relevant to their search.
- Experiment with different calls to action: Do you offer free shipping or free returns? Call now vs. book now?
- Highlight a unique benefit of your product or service: What makes you stand out from the competition? Think about what matters to users (perhaps an exceptional warranty or return policy).
- Create time- or location-specific ad text: Test seasonal creative around holidays or special events, or test location-optimized creative.
Improve Ad relevance
- Add negative keywords: Prevent your ads from showing on unwanted queries or queries not closely related to your product or service.
- Be specific on mobile: If a user’s mobile search experience is different from desktop, test mobile-specific creatives.
- Be local: Target the right region for your business by using only the relevant languages and locations.
Include relevant search terms in your ad copy: Adding search terms that are related to your business in your ad copy can help make your ad more resonant for users.
Improve Landing Page experience
1 Send traffic to the right landing page, related to a user’s query. “striped shirts,” - striped shirts,
2 Be consistent: Make sure the landing page continues the conversation set up by your ad, on the ad’s offer, call-to-action.
3 Make your site transparent and trustworthy: find your contact information easy, clearly state what your business does. make it clear why you’re asking for infos and what you’ll do with it.
4 Work on loading speed and clarity: prioritizing the content that’s visible above-the-fold.
5 Mobile optimization
Investigate factors that could affect Ad Rank
- Advertiser has made changes that can affect their Ad Rank
- Impressions are fluctuating
- Ads are less visible
- Competitors might be entering the auctions
- Seasonal changes are impacting metrics
- Change in paid traffic vs. organic traffic
Rising CPC
Response to client’s objection:
“Each advertiser and auction is unique, so it’s difficult pinpoint why you may be seeing an increase in average CPCs. These are simply an average and are not indicative of the price you’re paying for every single click.”
Follow-up questions:
Are max CPC bids set significantly higher than average CPCs?
Did you start or stop using ad extensions?
Has the CTR changed?
Has the competitive landscape changed?”
Next steps:
Refer to this blog post for four ways to stay on top of average CPCs.
Quality is a black box
Response to client’s objection:
“Quality is factored into the auction. This ensures we have a robust ecosystem, resulting in an exceptional user experience and value for you. If the auction didn’t have a quality component, the winner would simply be the advertiser willing to pay the most.
The auction has been set up to reward advertisers who focus on quality, which can lead to extra benefits (such as: lower costs per click and so on).”
Follow-up questions:
Do you have specific questions I can address about the quality of the auction?
Is it possible some other factor is causing you to question the system?
Next steps:
If a client is doubting our system, direct them to this external guide, outlining how to optimize by using quality score. It is published by our product and marketing teams!
Rising Brand CPC
Rising Brand CPCs!
Response to client’s objection:
“Remember that not all auctions are the same and that quality is recalculated with each search query. Even if your CPC has stayed fairly stable, many factors could be influencing the average CPC. For example, you could be seeing a CPC fluctuation because your max CPC bid is higher than the average CPC you pay.”
Follow-up questions:
- What date range are you using for your comparisons?
- Try to focus specifically on a shorter date range, where you can identify a shift.
- Are you looking at a device breakdown?
Mobile traffic has grown a lot, which could skew the data.
Fluctuating Impression Shares
“Your impression share could be decreasing because your competitors’ ads are showing or because your ads are not eligible to show.
The Google Ads system is not set up to maintain a target impression share by setting a max CPC bid. Max CPC bids exist in the system so that you can set the maximum cost you are willing to pay for a click. This is then used as a factor in the Ad Rank calculation, which ultimately determines the actual cost.”
Follow-up questions:
Has there been a shift between paid and organic traffic?
Next steps:
Use the Bid Simulator to see the potential impact of bids on clicks and impression volumes.
Rising CPC Average!
Response to client’s objection:
“Remember that the expected impact of ad extensions figures into Ad Rank, which is at the core of our auction system. Ads with ad formats have more prominence than ads without them, because formats generally draw more attention to an ad and increase clicks on it.
Your average CPCs may fluctuate as the cost of incremental clicks from ad formats change dynamically based on the total prominence your ad receives. You can generally get equal clicks for less money by using ad formats. If you need to manage costs, do so by lowering bids instead of removing formats.”
Next steps:
Run analysis on your account data to see if certain times of day, particular geos, or devices are more expensive. This can open up access to new and more expensive auctions that you were not eligible for in the past.
Use Google Ads Campaign Drafts & Experiments to A/B test ads with and without extensions.
Bidding Strategies
Target Roas, Target CPA, Max Conv, Max Conversion Value