In a previous post, I mentioned the concept of the quality score that Google places on each keyword within an ad group.  This blog post will shed some additional light on how the quality score is calculated and why it should be important to your business marketing strategy.

The concept of the quality score is to ensure that the most relevant content/ads receive a higher score, which in turn will help the ad become listed higher and cost less. 

The formula for the quality score is two-fold as it influences both the keyword's minimum bid and the keyword-targeted ad's position in the search results.  The precise formula for the quality score is a mystery; however, Google does give us a list of the basic components used - summarized below.

Optimizing for a keyword's minimum bid

• The keyword's historical clickthrough rate (CTR)
• Relevance of the keyword to the ad
• • For example, if you are targeting the keyword string of Sioux Falls Marketing but your ad copy does not contain this keyword string - you will receive a poor rating for this component
• Quality of landing page
• • Relevant content, navigability, load time, etc
• Historical CTR of the entire ad group

Optimizing for a higher ad position

• Historical CTR of the ad
• The ad's display url
• Matched keyword(s) on Google
• Relevancy of the keyword and ad
• Account history
• • Google actually takes into account the CTR of all the keywords and ads in your account

I'd also like to make another special note on the importance of relevant keywords within the ad copy.  If you're targeting the keyword string of business blogging, it is pertinent that this appears at least one time in the ad copy.  It seems very simple, until you begin accumulating an expansive list keywords!  The solution? Ad Groups.  
For more information straight from Google pertaining to AdWords, click here.

Happy PPC'n!

Jeff Meuzelaar
Click Rain
Sioux Falls Marketing