Google uses two aspects to determine how much you have to pay per click and the position of your advert. The first aspect is the quality score of your targeted keywords and the second aspect is the maximum CPC that you’re willing to pay for your targeted keywords. The rule is simple; you can get a higher success with your targeted keywords if you get a higher quality score.
Components that Determine Google Adwords Quality Score:
Quality of Landing Page – Adwords team will review your landing page before displaying your ads. They will review your landing page’s navigation, usability, relevancy and optimization. So optimize your landing page for the user to get higher quality score.
Click-Through-Rate (CTR) – Focused ads and ad groups will not only increase your CTR, but they can increase quality score. The higher your quality score is, the lower your cost-per-click will be. This is how Google rewards their advertisers.
Display URL History – Know that you can also test your display URL and this is 1 factor affecting click-through-rate. This is sometimes overlooked by many advertisers.
Keyword Relevance – Make sure that your ads are highly relevant with your targeted keywords up to your landing page. This means you have to give what exactly the user is searching for. Otherwise, most likely you will receive a very low quality score and your ads will be rarely shown, or worst if it’s not shown at all.
Geographic Performance – If you achieved a success in your targeted areas locally, it can help you get higher quality score.
Account History – This is determined by looking at your overall CTR of all your ads and keywords in the account. So if you’re a new advertiser, this is your chance to start your campaign right in the beginning and build a good account history.
Quality score is calculated every time someone searches for one of your keywords. It will then be used in various ways that will affect your Ad Auction Eligibility, your Keyword’s First Page Bid Estimate, your Keyword’s Actual Cost-Per-Click, and your Ad Positions.
In conclusion, if your quality score is high, your costs is lower, and you have a better ad positions.
Whether you are a customer, publisher, or advertiser, Google Adwords system works best for everyone. If Google (the publisher) show’s an Ad (from the advertiser) that is relevant to the search (from the customer) – then everybody’s happy. Always remember – Relevancy is the key.