Introduction to the Google Ad Auction
Loading...
Uploaded by sparkerthinkbig on Oct 30, 2009
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!
- 8 likes, 0 dislikes
-
Uploader Comments (sparkerthinkbig)
All Comments (3)
-
This is the best explanation of the Google Adwords auction that I have seen!
-
While this all sounds terrific and simplistic mathematical formulas, there are a number of key ingredients that you have failed to mention here Hal.
1. You are docked if you've had an add that didn't perform well and your adds won't show.
2. If you have keywords that didn't perform well, you are again docked and your adds won't show.
3. You can have the best keywords with the best relevance and landing page specific to your add and still get docked without a very high CPC.
- 9:33
Google Quality Score Secretsby mynetmarketing5,069 views
- 1:20
Search Advertising With Google: Part 2 - Introducing the Auctionby Wisdek2,198 views
- 2:15
Google Adsense $107,704.87 - I Just Cracked 100K!! with Adsense :)by WebBusinessTube3,404 views
- 0:35
Search Advertising With Google: Part 1 - Introductionby Wisdek2,304 views
- 10:00
Finally Understanding Google Adwords Rankingby TrifectaFotografic3,814 views
- 8:33
Google AdWords Quality Score Explained: Relevancyby IPPCB550 views
- 7:50
Internet Marketing Statisticsby internetmarketingw21441 views
- 0:55
Drumming Gorilla - AC/DCby BHartland34,001 views
- 9:13
Google's Chief Economist Explains the Adwords Bidding Processby SBOnlineSolutions1,697 views
- 0:45
Search Advertising With Google: Part 9 - Summaryby Wisdek1,011 views
- 56:46
Hal R. Varian (Google) - The Economics of Internet Searchby Calit2ube11,749 views
- 9:07
Shipping Ordersby gameyy4,090 views
- 12:38
T-shirt Startup Resource for Those Strapped for Cashby tshirtriches1,795 views
- 9:58
Auction Market Theory Basicsby julian0625968,830 views
- 5:06
How To Install Magentoby BlueLayerMedia23,728 views
- 0:30
The most boring commercial ever!!!by barber74735,173 views
- 3:38
candan erçetin sertab erener yalnızlık senfonisi 14.03.2007by despriteOcercetin136,423 views
- 0:36
Search Advertising With Google: Part 3 - Importance of Quality Scoreby Wisdek822 views
- 3:20
The FREE Negative Keyword Toolby WordStreamSEM475 views
- 33:53
Search University 1 - AdWords Preso - Olivier Zimmer (Google)by Semetis1,344 views
i agree -thank you
sparkerthinkbig 1 month ago