How Does PPC Advertising Operate?
PPC advertising begins with advertisers setting up an account on a platform such as Google Ads. They then select their target audience based on keywords and other criteria like demographics, set a budget, and decide the maximum amount they are willing to pay for each click. Advertisers create ad content, including copy and visuals, and submit these to the auction where they compete with others targeting similar keywords or demographics.The Operation of Google Ads Ad Auctions
When a search query is made, Google Ads initiates an ad auction. The auction uses the Ad Rank system to determine the placement and order of ads.Ad Rank is influenced by several factors:- Bid Amount: The maximum bid an advertiser is willing to pay for a click.
- Auction-Time Ad Quality: This includes the expected click-through rate (CTR), ad relevance, and the quality of the landing page experience.
- Ad Rank Thresholds: These are the minimum criteria required for an ad to be displayed.
- Auction Competitiveness: The level of competition for the auctioned keywords or ad space.
- Search Context: The user's location, device, time of search, and the nature of the search terms, along with other ads and search results on the page, and user signals.
- Expected Impact of Assets: The anticipated effectiveness of ad extensions and formats.
Quality Score
Quality Score (QS) is a metric that reflects the quality and relevance of ads and is rated on a scale from 1 to 10. It is composed of:- Expected CTR: The likelihood of the ad being clicked when shown.
- Ad Relevance: The ad's pertinence to the search query.
- Landing Page Experience: The quality and relevance of the landing page to which the ad directs users.
Although Quality Score is not directly used in the auction, its components are critical in influencing Ad Rank, which makes it an important metric for advertisers to monitor.
