How does an ad auction work

Question 1

If I own a fishing website that is a Google partner, Google will only show ads that are ___________ to fishing.

Answer 1

relevant

Question 2

T/F Advertisers pay per impression or per click.

Answer 2

True

Question 3

The ad auction ranks advertisers based on their ______ and ____________.

Answer 3

bids and quality score

Question 4

Text ad or image ad is an example of ___________

Answer 4

ad format

Question 5

What’s an eligible ad?

Answer 5

An ad that has the potential to win the auction and be shown.

Question 6

For each eligible ad, ___________ is calculated by combining the CPC bid and the ad’s Quality Score.

Answer 6

Ad rank

Question 7

Because ads are then ranked by Ad Rank, an advertiser with a low CPC bid but high Quality Score may win the auction against another competitor whose CPC bid is higher but who has ad creatives that pose poor user experience and are not likely to be clicked. T/F

Answer 7

True

Question 8

Quality Score is a measure of how _________________.

Answer 8

useful an ad is to the people who see it.

Question 9

Which 3 factors does Google use to determine quality score?

Answer 9

1. Expected click through rate. 2. Ad relevance 3. Landing page experience

Question 10

an advertiser typically pays no more than what’s required to rank higher than the next best ad. T/F

Answer 10

True

Question 11

Google Ads is an ___________ based system.

Answer 11

Auction

Question 12

What’s an auction based system?

Answer 12

It means every time an ad space becomes available, Google runs an auction in the background.

Question 13

Which three major elements does Google Take into account when it decides how your ad should rank?

Answer 13

1) Your max cost-per-click bid for the keyword
2) Your quality score for that keyword
3) Your ad extensions and their relevance to ad and keyword

Question 14

What’s the formula for ad rank?

Answer 14

Ad Rank = CPC Bid x Quality Score

Question 15

Higher quality scores and higher ad rank equals ___________________.

Answer 15

lower CPCs and lower CPAs

Question 16

In Ads terms, your budget is____________________

Answer 16

How much you are willing to spend each day.

Question 17

In the cost per click model, your bid is how much you’re prepared to pay for a click on each _____________

Answer 17

keyword

Question 18

Note that it’s each keyword and every click. So, if you have the same budget of $10,000 you could “buy” 5,000 clicks at $2 each from one keyword or any combination of bids and click numbers depending upon how many keywords you have. T/F

Answer 18

True

Question 19

Your bid is the maximum amount of money you’re willing to pay in order for your ad to show. This is also known as your ________ Bid

Answer 19

Max CPC

Question 20

The ad auction is all about what _______ show and in what order.

Answer 20

ads