101 google auction system
DESCRIPTION
Understand how Google auction system is working.TRANSCRIPT
Google bidding How-toFeb 17, 2012
NETBOOSTERASIA INC.
ORGANIC
RESULTS
PAID SEARCH
RESULTS
GOOGLE SEARCH
The position in Google depend on an auction system
Google Auction system
GOOGLE AUCTION SYSTEM
Max bid
$4.00
$3.00
$2.00
$1.00
Each advertiser gives
to Google the
maximum bid he is
ready to pay
For every
query made
and auction
is done by
An auction is only effective for a click
So an advertiser only pay when a click
happen
GOOGLE AUCTION SYSTEM
Advertiser pay only the
bid of the advertiser
below them
You just pay enough to
beat the competition
Max bid Price paid
$4.00
$3.00
$2.00
$1.00
GOOGLE AUCTION SYSTEM
Advertiser pay only the
bid of the advertiser
below them
You just pay enough to
beat the competition
Max bid Price paid
$4.00
$3.00
$2.00
$1.00
$3.00
$2.00
GOOGLE AUCTION SYSTEM
Why quality matters ?
Quality score is made of 3 components
QUALITY SCORE
CTR
It means Google consider
users clicks like votes
The more clicks you have
the more your score goes
up
Quality score is made of 3 components
QUALITY SCORE
CTR
It means Google consider
users clicks like votes
The more clicks you have
the more your score goes
up
Relevancy
How relevant the
keyword is to the search
query
And relevancy of the Ads
to the keyword
Quality score is made of 3 components
QUALITY SCORE
CTR
It means Google consider
users clicks like votes
The more clicks you have
the more your score goes
up
Relevancy
How relevant the
keyword is to the search
query
And relevancy of the Ads
to the keyword
Landing page
Landing page quality:•Relevant
•Original content
•Easily navigable
•Quick load time
Ad Rank
Max bid
$4.00
$3.00
$2.00
$1.00
AD RANK
Max bid X Quality score
$4.00
$3.00
$2.00
$1.00
AD RANK
= Ad Rank
Max bid X Quality score
$4.00
$3.00
$2.00
$1.00
AD RANK
= Ad Rank
1
8
3
6
Max bid X Quality score
$4.00
$3.00
$2.00
$1.00
AD RANK
= Ad Rank
1
8
3
6
4
8
9
12
Max bid X Quality score
$4.00
$3.00
$2.00
$1.00
AD RANK
= Ad Rank
1
8
3
6
4
8
9
12
Position
X not display
3
2
1
Cost of the click
COST OF CLICK
You will always pay the minimum amount
necessary to maintain your position
COST OF CLICK
Price I will pay
COST OF CLICK
Price I will pay
Quality of my
advertising
COST OF CLICK
Price I will pay
Quality of my
advertising
Price of my
competitor
COST OF CLICK
Price I will pay
Quality of my
advertising
Price of my
competitor
Quality of my
competitor
COST OF CLICK
The more quality I have
the less I will pay
COST OF CLICK
The better is my competitor, the
highest will be the price to pay
Example
Max bid X QS
$4.00
$4.00
$4.00
AD RANK
= Ad Rank
8
6
3
32
24
12
Actual CPC
Max bid X QS
$4.00
$4.00
$4.00
AD RANK
= Ad Rank
8
6
3
32
24
12
Actual CPC
24/8 = $3.00
Max bid X QS
$4.00
$4.00
$4.00
AD RANK
= Ad Rank
8
6
3
32
24
12
Actual CPC
24/8 = $3.00
12/6 = $2.00
Max bid X QS
$4.00
$4.00
$4.00
AD RANK
= Ad Rank
8
6
3
32
24
12
Actual CPC
24/8 = $3.00
12/6 = $2.00
Min price No advertiser below
Max bid X QS
$4.00
$4.00
AD RANK
= Ad Rank
8
6
32
24
Actual CPC
24/8 = $3.00
12/6 = $2.00
Increase of the quality of an Ad
Quality score goes up to 10
Max bid X QS
$4.00
$4.00
AD RANK
= Ad Rank
8
6
32
24
Actual CPC
24/8 = $3.00
12/6 = $2.00
Increase of the quality of an Ad
Quality score goes up to 10
$4.00 10
Max bid X QS
$4.00
$4.00
AD RANK
= Ad Rank
8
6
32
24
Actual CPC
24/8 = $3.00
12/6 = $2.00
Increase of the quality of an Ad
Quality score goes up to 10
$4.00 10 40
Max bid X QS
$4.00
$4.00
AD RANK
= Ad Rank
8
6
32
24
Actual CPC
24/8 = $3.00
12/6 = $2.00
Increase of the quality of an Ad
Quality score goes up to 10
$4.00 10 40 24/10 = $2.40
Google ALWAYS REWARD QUALITY
WORK ON QUALITY FROM
Keyword
TO Ad-Text
TO Landing page
THIS WILL GIVE YOU THE Best COST FOR
YOUR TARGETED POSITION
Based on a presentation of Google Chief Economist halVarian
THANK YOU
LAURENT GOIRANDCEO, NETBOOSTER ASIA