Biddable Media Topics and Techniques

Biddable Media: Paid Ads in Google Search

Google Ad Auction; Google in Business

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Have you ever noticed the search results that show up at the very top of the page while you’re searching for an item on Google? Some might be organic search results, as we’ve previously discussed. The organic search results are the web pages that are deemed relevant and useful to a users search, and appear at the top of the page, under the search bar. However a Paid Search Ad is what is classified as a search result that appears before the organic results in a Google search query.

I’m sure a lot of you are thinking, WeLl HoW Do I kNoW ThIs aD IsN’t jUsT sOmEoNe pAyInG tO bE SeEn??? ItS pRoBaBlY jUsT a ScAm!

My friend, I am here to tell you that you would be WRONG.

The Cost Per Click formula is total money spent divided by total measured clicks

Paid search results still have to be relevant to the users search query. The relevancy is still determined by the relevancy of the keywords used, as well as by Google bots (ie, crawlers). The Google Ad must fulfill some sort of information or use to the user, hence why having a Google Search Ad means that the advertiser must have an extremely well executed keyword strategy. The advertiser will pay per-click (CPC Cost-per-Click) and thereby allow the business to be able to reach a wider audience with a series of sponsored listings on the search engine site. (You can read more about google keyword strategy in my posts titled Biddable Media Topics and Techniques Part 1 and Part 2.)

Let’s use my favorite category as an example: Makeup

Search results on Google for Sephora
Search results from Google

Notice how Sephora has a paid search result as well as an organic search result when you type Sephora into the search bar on Google? Sephora will pay every time a user clicks on that relevant ad.

Let’s talk about how the Google Ad Auction works!

The google Ad auction decides which ads the user sees, and in the order in which they are shown. This doesn’t mean that the user that pays highest per bid, will win the auction and have their ad shown first.

The ad position is determined by 3 factors

  • Monetary Bid
    • The maximum amount that the advertiser is willing to pay per-click when a user clicks on the ad.
  • Quality Score of Ad
    • Usefulness and Relevancy of the ad
    • Determined by 3 factors
      • Expected Click-Through-Rate (CTR)– How often the ad will be clicked when shown. This is determined my Google’s historical data.
      • Ad Relevance– Based on the language used in the ad, and all relevant keywords.
      • Landing Page Experience– The experience offered to the user when clicking to go to the page, based on use of consumer information, relevancy of search, etc.
        • This can be monitored in your Google Account under your Google Keyword Planner
  • Expected Impact of Ad
    • Number of ad extensions that give the user more information about your business.
      • Page Extensions
      • Phone Numbers
      • Site Performance
How to calculate ad rank in Google auction

In the example above, you can see that although Advertiser 1 has the lowest maximum monetary bid, their ad rank is the highest due to their other ranking factors and quality score. If you’d like to see an in-depth video on how the Google Ad Auction works, you can watch the video on Google’s YouTube Channel.

I hope you were able to learn something new. Stay connected for more topics and techniques on biddable media! Stay Beautiful <3