AdWords Tip #1: Google AdWords determines the Minimum Cost per Click of a Keyword using the formula
Minimum Cost per Click of a Keyword = Quality score X Maximum Cost per Click
Quality Score is an aggregate of various factors. One of the important factors is the Keyword Click through rate. You may say I know about this, so what is so secret about it. More important is how the Keyword Click through rate is calculated.
Let’s say you are advertising for the keyword “search marketing”. You have the keyword advertised in all three match types which are exact match, phrase match and broad match (match types) respectively.
Google AdWords uses the click through rate of “search marketing” for exact match to calculate the Quality Score of all three match types which are Exact, Phrase and Broad.
Let’s say you are advertising the keyword “search marketing” in Broad match only. Then Google AdWords will only consider the click through rate of search queries which exactly matched the keyword “search marketing”. This applies to phrase match as well.
AdWords Secret
What is the use of knowing this AdWords tip?
In the context of keyword click through rate being used to calculate the quality score, if you had keywords in exact match and has poor click through rate, it’s time to start working on them. But if you had keywords in exact match which has high click through rate and conversions, you can use those keywords to optimize your web site for organic search results as well generating more traffic and revenues.
Further advertise your products on all keyword match types and find which match types performs the best. If your web site is performing better for certain keywords in broad match, then use Google analytics to find the exact keywords customers typed in to reach your website. Add those keywords to your keyword list and start advertising as well.
