Posted by Steve Baker on Wednesday, December 5th, 2007 in Advert Text, Dynamic Keyword Insertion, Google Adwords
I regularly post on PPC forums, particularly Digital Point. And the same questions seem to crop up time and time again. Now, for the first time, the answers to all these questions can be found in the same place.
Simply put, your minimum bid is high, because your Minimum Bid Quality Score is low. This is Google’s measure of how relevant your advert and site are to the person searching on Google for your keyword. Google lists the following as being the inputs into this calculation:
A low clickthrough rate indicates that your advert doesn’t appeal to the searcher. They are seeing your advert, but not clicking on it, because
Your advert text should relate to your keyword. Ideally, you should have the keyword in the title of the advert – this is especially important for new campaigns, as Google has no clickthrough rate data to judge your advert, so it has to guess how popular it’ll be. Google go into great detail explaining what they are looking for on a landing page. Click here for full details. In summary, there are three main points
Can the user find what they were searching for easily? Are your advert claims backed up? Is there unique content on your website, or is it just links and copied information? Do you provide important information about your business, like contact details, your privacy policy and your business address? Are you running an above-board, honest business? Can users easily find their way around your site? In summary, if you’re running an honest business, and your advert is clear about what you do, and relates to the search term, then you should get a low minimum bid.
Your keywords are inactive if your minimum bid is higher than your actual bid. I’d suggest that on the page with the keywords on it, you customise your columns and show your minimum bids (and Quality Score). If your Quality Score isn’t ‘Great’ read the answer to Question 1.
There are a number of reasons that you may not see your advert. The main ones are:
There are rules about what you can and can’t say in an advert. The full Editorial Guidelines can be found here. The most common problems seem to be breach of trademark, use of superlatives without backing them up on the site and banned content. The policy on keywords is quite similar (though superlatives are allowed) – bidding on other companies’ brand names is very hit-and-miss. Are you getting results, but not seeing your advert when you search for it? Five major reasons there are.
If your average position is below about 8, click onto the second page of results. Your advert may simply be getting shown outside the top ten… If your advert is targeted to a region, use www.google.co.uk/adpreview to check that it’s working. If your daily budget has run out, you’re bidding too much. Reduce your bids and try again tomorrow. If your advert is shown at certain times, search then. Failing all of these, use Adpreview (see link above). Google mixes up the results a bit if you see your advert a lot without clicking on it.
If you’ve read this through, you should already know that any keyword can be cheap – all you need is a good Minimum Bid Quality Score. Of course, bidding your minimum bid won’t get you very far up the search results…
There’s no answer to this one. If a keyword’s generating profit, why wouldn’t you want to bid on it. If a keyword isn’t generating profit, then why would you want to? Ideally, you’ll bid on all of the profitable keywords and none of the unprofitable ones. And since, by adjusting your bids, any keyword that generates conversions can be profitable, you should bid on any keyword that you think will lead people to visit your site, and convert. The only caveat I would put in here would be if you’ve got a very limited budget. In this case, you may not have the funds to bid the most profitable amount on all of the profitable keywords – in which case, you should focus on the most profitable ones (it’s hardly rocket science, is it!) Just bear in mind if you do this that your lack of budget is costing you profit.
If you understand how Google uses the Quality Score with your bid to place your advert, you already know the answer to this one. If not, read this. Consider the following example. I’m currently top, with a Ranking Quality Score of 2.0 and a maximum bid of £1.50. How much do you have to pay to appear above me? If your RQS is 1.5, you need to pay £2.01. If your RQS is 1.0, you need to pay £3.01 If your RQS is 0.5, you need to pay £6.01 If your RQS is 0.1, you need to pay £30.01 So the answer depends on your competitors’ bids, their RQS’s and your RQS.
I have a real problem with asking me this question. It’s unreasonable, I know. Newbies are just trying to set up a campaign, and bid roughly the right amount… But the answer is pretty obvious! You should appear in the position that makes you the most money! The further up the page your advert appears, the more clicks (and hence conversions) it’ll get. The further down the page it appears, the less you pay for each click (and hence conversion). So bounce your advert around a number of positions, work out how many conversions you get, and how much they cost, in each position, work out your profit, and Bob’s your uncle. I’d suggest that starting in about 3rd – 5th is a good idea, if you’ve got the budget to appear there all day. This is because the top couple of positions are often taken by people who are more interested in appearing top than in making money – not always, but in my experience, more often than not. If you appear much lower than this, your adverts may start dropping down to page 2 from time to time, which can make your figures far more complicated. If you’re advertising in an area where your competitors are very clued up on PPC, you may find that there’s very little difference in profit between appearing 2nd and 8th (for example) – this is not surprising, if their campaigns have been optimised to the same extent as yours, and they make similar amounts of profit from each click, then they will all have a similar optimum bid.
It’s not really all that surprising that there’s no clear answer to this. You should be able to generate profitable sales no matter how low your budget, though it may take longer to optimise your campaign. Ideally, you’d want enough budget to put all relevant keywords in their most profitable positions, all the time. This would generate the maximum levels of profit for you, if you can afford to. A more meaningful question would be “How Much Budget Do I Need In Order To Make My Campaign Profitable?” This is a much more difficult question to answer – you certainly don’t want to blow a fortune while you learn your way around Adwords. If this is your first attempt with Adwords, then limit yourself to a fairly small budget, and gradually build it up as you gain more confidence (and better results).
There are a number of reasons that you have a low clickthrough rate. Here are the most likely:
The first one is a problem with your keyword. You should only bid on a keyword if most or all of the people searching for it are looking for something you have. The others are problems with your advert. It needs to stand out, be clear about what you do, be honest (more or less) and be compelling. Here’s a more complete guide to writing an advert that people will click on.
Dynamic Keyword Insertion allows you to insert any one of your keywords into your advert text. This sounds great, but there are a few problems with it… To use DKI, you need to use the following syntax in your advert. {KeyWord:default term} Where the default term is what Adwords uses when the keyword isn’t allowed to be inserted (e.g. if it makes the line too long). Note that Adwords adds in your keyword, not necessarily the search term. If you’re using Broad Match, the advert may not be all that relevant. Also, be careful around singulars and plurals. If you’ve got “toaster” and “toasters” in your Adgroup, the advert: Buy {Keyword:Toasters} Now looks great with Toasters in there, but with Toaster in there, it reads: Buy Toaster Now which is terrible. People will immediately recognise that you’ve just put their search term in the advert, and won’t click on it. E-bay does this all the time… Finally, be aware that this doesn’t improve your Quality Score. The default term is used to determine your QS, so using DKI as an alternative to grouping your keywords appropriately is not really a very good idea.
If a company has a word with Google, they’ll stop anyone from bidding on that brand name. So if you want an exception (e.g. you sell Blackberries), you need to talk to the company in question, and get them to tell Google that you’re allowed. Similarly, if people are bidding on your name, have a word with Google, and they’ll generally sort it out…
As a general rule of thumb, the content network produces cheaper clicks than the search network, but they are of poorer quality. How much cheaper, and how much poorer understandably varies from campaign to campaign. If you’ve got the budget, you should do everything that makes money. So try them both, see which are profitable, and do that.
Is PPC a waste of money, or does two results mean twice as many clicks? There are no absolute answers on this one – everyone’s got an opinion on it, and mine is that it’s generally worthwhile on everything except your brand name. With your brand name, you may not benefit from PPC unless there are other people advertising using your name and you can’t stop them. If you’re the only advertiser, it doesn’t make much difference, since your minimum bid will be very low (and hence so will your cost per click). My reasoning is that people don’t look at the whole page, then decide which company to click on – they see an advert that appeals, and click. If this is the case, then more adverts equals more clicks, and your PPC won’t cannibalise your natural results to any great extent. So, I’d say to go for it. If you disagree, feel free to reply…
Nobody knows. It just happens from time to time. I suppose if Google told people, they could change their landing pages just beforehand to improve their QS, then change them back to break all the rules and get away with it.
For example, if you have a nationwide campaign, can you target another one with the same keywords just on one city in the country? Yes, you can, though it may not work as well as you’d like! Google allows you to have the same keyword in multiple campaigns – but it shows the one with the higher Quality Score – so there’s no guarantee that your locally targeted campaign will ever be seen! That said, if you have locally targeted advert text, you’ll probably get a better clickthrough rate, and with a local landing page, your Quality Score should be better, so you’ll probably be fine.
Photoshop. Hope that helps, Steve