To get more information on how PPC BID Mgt works you can view the video below
Introduction to the Google Ad Auction
From: sparkerthinkbig |
An explanation of this major Adwords Auction change as described by Hal Varian, Google's Chief Economist (9 min video).
Since Google implemented major changes in their Adwords Auction formula a few months ago, many companies are being penalized by Google in their Adwords campaigns (PPC - Sponsored Links) if their "Quality Score" is low. Quality Score is determined by CTR (Click Thru Rate), Relevance, Landing page & Ad quality. Many clients are unaware of this major change because it was not formally announced by Google & what's worse, you may not be aware of the penalties that are occurring because of it! The penalty for a low quality score will include a potentially higher CPC (Cost Per Click) than you might have otherwise paid & a reduction in Impressions or "Impression Share" which will negatively effect your overall ROI. The document attached explains how a client can view his/her Impression Share data & other trends thru Google's reporting system. Many clients don't know how to view this important data & if they do, they often think that the recent reduction they've noticed in their Impressions, ROI (return on investment), conversions, sales etc... are a direct result of the slowing economy, which in many cases may not be true at all - In fact, it may have everything to do with this Google change!
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