Why do we focus so much on creating better ads, generating more keywords, optimization of the accounts and things like that. Just so we get more traffic, more impression, more clicks and more sales done. It is the imperative to constantly improve the ads that we have, so that the clicks get converted to sales. Our entire activity deals with making sales by reaching out to customers at the most desirable form that can be presented to them. Hence, we focus on our sales team to drive in that conversion of clicks by our customers.
So we not only hope to attract users of the internet but make every visitor a potential customer by turning them to click on our ads. We work hard on our ads and even harder to get the clicks. So what is important is turning the clicks into customers. We however cannot make this possible with everyone since we cannot go on telling people what to do. But what we can do is work on optimization (better, relevant, precise, suggestive ads) so when people get to the site, they will be more likely to make a purchase.
- Clarity of the value proposition is the most important factor in determining whether a customer buys or not. So, the ability to answer the question of why I as a customer would buy gives a better picture by standing in the customer’s shoes
- Presenting a concise and summarized description, sub-headings, etc. help attract customers because this makes the page more succinct providing only the necessary details. It is important not to say too much, so learning how to convey the key message through the use of few words is vital
- Simple is always the best. A user does not require an elaborated landing page. All he does is look for a piece of information and go ahead and click on it if it is suggestive. So, designing a simple yet powerful ad description that is both straightforward and attractive is very important
- It is good to flaunt the product by giving hints of why it is better than the competitors or what differentiates it from the rest available. So, the option available by using attractive words and phrases like free, offer, discount is appropriate. Getting specific to free offers and indicating free shipping, warranty information is always helpful
- The search results are very positive if provided with the right landing page through the URLs. So directing the ad to the particular URL with the specific product is very important to get the customer click on it and make the transaction. Credibility is a true statement. Customers will buy only from people who can be trusted and who are genuinely selling the product
The best way to sell a product is to let the customer make the choice of why he should choose this particular product through your ad. This is the key to advertising. Reaching out to the customer’s mind by proving him right is important. This can be achieved through compelling ads and one should keep in mind not to have an argumentative approach but a passive one.
Ad Ranking Model
The ranking model refers to the method in which advertisers’ ads that compete against each other are ranked and is applicable to both Sponsored Search as well as Content Match. So once an ad is qualified to be displayed, its rank is determined by an algorithmic combination of its bid and Quality Index score.
Rank = Bid + Quality Index Score
Bid
Since advertisers are allowed to decide and determine how much they want to pay, they pay only when their ad is clicked. This allows them to remain in control of their costs. The average of these click charges is the cost-per-click (CPC).
Quality Index Score (QI)
It is the relative measure of the ad’s performance. An advertiser learns how well his ad is performing, on average. It further reflects an ad’s ability to meet the needs of the users by looking at the click-through-rate (CTR). It identifies those ads that are performing well and separates them from the ones that need attention. The goal of Quality Index is to add value to an ad’s position by more than just the bid. The goal is to improve the end user’s experience, as well as reward advertisers for developing high-quality ads. The Quality Index helps advertisers focus their efforts on what matters most to their business that is making effective marketing messages.
When an advertiser creates a new ad, the Quality Index score is based on various relevance factors. As time goes on and impressions and clicks accumulate, the click-through rate (CTR) becomes the primary factor in calculating a Quality Index score.
Note : International traffic is not factored into the Quality Index score – only traffic from IP addresses (internet protocol address) located in the account’s marketplace.
Rank Determination
An ad’s rank is determined by an algorithm based on its bid and Quality Index score. An advertiser with high-quality ads is rewarded with the best position for their bid. Quality Index greatly impacts how much an advertiser needs to bid and the position in which their ad is displayed. So, even if the cost to the advertiser is low or high, it does not affect its ranking since the rank is purely determined by the QI score and the bid amount.
Calculation of CTR: (Click/Impression)x100
Calculation of CPC: (Cost/Click)
Calculation of CPA: (Cost/Conversion)
