Google AdWords auction
Google AdWords is how ads are purchased for specific keywords and phrases. Advertisers choose a list of keywords that are relevant to their ad, then bid on those keywords. Each bid includes how much they are willing to pay Google when a user clicks on the ad. This is why these types of ads are also referred to as Pay-Per-Click, or PPC ads. The average cost of a Pay-Per-Click ad is between $1.00 and $2.00.
In addition to considering payment, Google also considers the Quality Score that is assigned to the ad based on its relevance and the quality of the advertisement itself. In order to have the highest chance of an ad appearing for a specific keyword, especially if there is a lot of competition for the keyword being used, the quality score of the advertisement should be optimized. That includes considering things like:
- The relevance of the ad to the search queries made by users
- The relevance of the Google keyword to the ad group
- The relevance of the ad and the landing page it corresponds with
- The historical performance of the ad and the account it is associated with
When the quality score of the ad is enhanced, the overall cost of the Google ads will be lower. In addition, ads will be displayed more often, and they will be displayed in more favorable positions on the SERP.