The Cost of a Low Quality Score

January 4th, 2012 by Justin Miller

Quality is important in advertising, but even more so in PPC advertising. Google AdWords gives the top Ad Position to the highest Ad Rank, and Ad Rank is Max CPC Bid multiplied by Quality Score. This means that there are two factors that decide what position your PPC ads are shown – 1) How much you Bid (CPC) and 2)What your Quality Score is. A Quality Score can range from 1 (terrible) – 10 (excellent), as shown below.


In order to clearly see the Value (or Cost) of Quality Score, let’s walk through an example. First, assume a competitor is Bidding $0.75 with a Quality Score of 7. This means their Ad Rank is 5.25. The Table below reveals the CPC Bid that is needed in order to achieve the same Ad Rank depending on your Quality Score.


As you can see, a Higher PPC Quality Score can actually save you money, while a lower Quality Score could cost you $1.00 or more of additional cost per click (CPC.) Let’s continue with this example and assume 100 Clicks in a month. The below Table shows the additional and total savings/cost due to Quality Score.


The Yellow Highlighted Row is your competitor. The Green Highlights show the possible savings per click, and how you could be paying less than your competitor, if you have a higher Quality Score. However, the Red Highlights reveal that a low Quality Score could cause you to pay more than double your competitors per click. Now you should be able to clearly see how a Low Quality Score will greatly increase your Cost per Click, which in turn increase overall Cost, but also how a high Quality Score could lower you Cost and increase your Bottom Line.

Justin Miller is the Search Manager for DaBrian Marketing. He does everything from research, account creation, campaign management, and reporting to improve clients’ Pay per Click (PPC) advertising and Search Engine Optimization (SEO). With separate accreditation in Google Analytics, Google AdWords, and Bing Ads, Justin has been helping companies increase awareness, website traffic, as well as conversions (sales, sign-up, registrations, etc.)

One Response to “The Cost of a Low Quality Score”

  1. December 25, 2014 at 6:26 pm, twitter.com said:

    Hello! This is kind of off topic buut I need some advice from an established blog.

    Is it very hard to set up your own blog? I’m not very techincal
    but I can fivure things oout pretty quick.
    I’m thinking about setting up my own but I’m not sure where to start.
    Do you have anny ideas orr suggestions? Cheers

    Reply

Leave a Reply

Your email address will not be published. Required fields are marked *

RSS
Facebook
Facebook
Google+
Google+
https://dabrianmarketing.com/blog/the-cost-of-a-low-quality-score">
YOUTUBE
LinkedIn