What is Quality Score and How Google Calculates Ad rank Calculation and Actual CPC – 2020
Ad rank: (scale 1-7)
- It is a Position of Ad
- It depends on CPC
Ex:
Person
|
CPC
|
Impression
|
Clicks
|
CTR
|
A
|
80
|
100
|
100
|
100%
|
B
|
60
|
100
|
0
|
0%
|
- If Person ‘B’ clicks A’s Ad 100 times then his Budget exhausted. There is a chance for B to go to the top.
- Google allows one click by one IP
- If B’s click A’s Ad by 100 different IP means his/her amount exhausted. So Google will check another a parameter called Quality score
Click through Rate: (Scale 1-100)
CTR = Clicks / Impression x 100
Quality Score: (scale 1-10)
- It is a score given by Google.
- It depends upon three Parameters
Quality Score = CTR
+ Ad relevance + Landing Page experience
- If Click is high – CTR is also high. CTR depends on Clicks
- If the position of Ad rank is high – Clicks is also high. Clicks depend on Ad rank.
- Quality
Score depends on CTR.
Once your CTR is high automatically CPC comes down.
Person
|
CPC
|
Impression
|
Clicks
|
CTR
|
QS
|
CPC
|
A
|
80
|
100
|
100
|
100%
|
8
|
50
|
B
|
60
|
100
|
0
|
0%
|
2
|
60
|
Answer is
“Ad rank does not depend only on
CPC. It depends on CPC and QS”
CPC
|
Ad rank
|
Clicks
|
CTR
|
QS
|
CPC
|
↑
|
↑
|
↑
|
↑
|
↑
|
↓
|
↓
|
↓
|
↓
|
↓
|
↓
|
↑
|
Case Study:
Case – 1: Quality Score is 6
Account: Digital Marketing.com
Campaign: Coimbatore
Ad group: Digital Marketing
Ads: Digital Marketing Training in
Coimbatore, Digital Marketing Course in Coimbatore, SEO Training in Coimbatore, SEO Course Training in
Coimbatore, SEM Training in Coimbatore, SEM Course Training in Coimbatore
- Here All the keywords in one Ad. So only one Ad (Ex: SEM Training in Coimbatore) is shown in SERP. If someone wants SEO training he wants to type and click.
Case – 2: Quality Score is 10
Account: Digital Marketing.com
Campaign: Coimbatore
Ad group: Digital Marketing
Ads1: Digital Marketing Training in
Coimbatore, Digital Marketing Course in Coimbatore
Ads 2: SEO Training in Coimbatore,
SEO Course Training in Coimbatore
Ads 3: SEM Training in Coimbatore,
SEM Course Training in Coimbatore
- Here All the keywords in three Ads. So Three Ad is shown in SERP. If someone wants SEO training or others they click then automatically your CTR will high.
“Conclusion: Don’t mix
all keywords in Ad. Better create separate Ad for Separate keywords”
- So if you create Separate Ad groups and Separate Ads then Ad relevance improve and CTR improve so QS increase then CPC comes own and Ad rank improves.
Ad relevance: (scale 1-10)
- Related Keywords Grouped.
- Use Phrase match rather than Broad
match
Landing Page Experience: (scale 1-100)
- Based on Website browsing Speed
Example:
Case -1:
Person
|
CPC
|
Ad rank
|
A
|
20
|
2
|
B
|
25
|
1
|
C
|
15
|
4
|
D
|
18
|
3
|
Case -2:
Person
|
CPC
|
Ad rank
|
Quality score
|
A
|
20
|
2
|
5
|
B
|
25
|
1
|
4
|
C
|
15
|
4
|
7
|
D
|
18
|
3
|
8
|
Google provides the QS
based on three factors
Case -3:
Person
|
CPC
|
Ad rank
|
Quality score
|
Ad rank Score
(CPC
* QS)
|
Ad rank
|
A
|
20
|
2
|
5
|
100
|
3
(based on QS
|
B
|
25
|
1
|
4
|
100
|
4
|
C
|
15
|
4
|
7
|
104
|
2
|
D
|
18
|
3
|
8
|
144
|
1
|
- So, person B is on top in case -1 and case -2 (our assumption). But person D comes on top (reality).
- So Ad rank does not depend on one
factor. It depends on Two factors
are CPC and QS.
Suppose, if CPC is low
Person
|
CPC
|
Ad rank
|
Quality score
|
Ad rank Score
(CPC
* QS)
|
Ad rank
|
A
|
20
|
2
|
5
|
100
|
3
(based on QS
|
B
|
25
|
1
|
4
|
100
|
4
|
C
|
15
|
4
|
7
|
104
|
2
|
D
|
10
|
3
|
8
|
80
|
1
|
- Then automatically c becomes first. So both two factors high mean it comes top.
Question:
How can we improve our ad in the first position?
- We don’t know about CPC of others.
- We know our QS in campaign and Ad rank in SERP.
- EX: Ad rank – 3 & QS: 6 then automatically increase or decrease our CPC (Ad rank score = CPC * QS)
How Google calculate Actual CPC
- Suppose if we are
setting Max CPC = 40 then each time the customer clicks your Ad then How amount will deduct?
Competitor
CPC + 0.01$
Example
Person
|
Max.CPC
|
Quality score
(1-10)
|
Ad rank score (1-100)
|
Actual CPC =
Comp
Ad rank score/Your QS + 0.01$
|
A
|
2$
|
10
|
20
|
16/10
+0.01$ = 1.6$
|
B
|
4$
|
4
|
16
|
12/4
+0.01$ = 3.01$
|
C
|
6$
|
2
|
12
|
8/2
+0.01$ = 4.01$
|
D
|
8$
|
1
|
8
|
8$
|
- A’s Max.CPC is 2$ but Actual Google deduct Actual CPC is 1.6$
- B’s Max.CPC is 4$ but Actual Google deduct Actual CPC is 3.01$
- C’s Max.CPC is 6$ but Actual Google deduct Actual CPC is 4.01$
- D’s Max.CPC is 8$ but Actual Google deduct Actual CPC is 8$
- So, D is a looser
Important things:
- Ad
ranks provide by Google and it depends on CPC & QS
- QS
Provide by Google
- We can’t
control and see those two parameters how Google calculate
- So better thing is design campaign proper and Group
all keywords in separate Ads
How Google Calculate
Quality Score:
·
Provide by Google
·
It will be from 1 to 10
·
It’s based on three-parameter: CTR+ Ad
relevance+ Landing page Experience
Ad rank:
·
Provide by Google
·
It will be from 1 to 100
·
It’s based on two-parameter: CPC * Quality score = Ad rank
score
·
Who is having Good Ad rank scores that
guy Ad rank is good.
Actual CPC
·
Provide by Google
·
It is calculated by the Competitor Ad rank
score / Your Ad rank score +0.01$
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