When it comes to finding success advertising on AdWords it is important to understand the underlying theory and metrics that control where you rank in the AdWords auctions and also what you pay. Because simply bidding more doesn’t get it done – not even close.

At the core of determining where your ads appear in AdWords is something called Google AdRank which essentially is the equation used by Google to determine the quality and relevance of your ads in relation to your keywords. If you score well then your prominence can increase and your costs decrease – success! – but of course if you don’t the opposite can be true.

In calculating your AdRank score Google not only takes into account your CPC bid level but also your quality score (which is determined by keyword relevance and also the quality of your landing page) and also any ad extensions that you have in place like telephone number, physical address, call out text, sitelinks etc.

These are weighted roughly 80% to the quality score and 20% to extensions so you can see that there are a lot of areas that you need to get right to rank well in the ad results but also to extract the maximum return from your advertising budget.

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