It's more than cheaper clicks
Here are all the benefits of improving your
AdWords Quality Scores.
Your average cost-per-click is inversely proportional to your keyword Quality Score. The short formula is:
Avg. CPC = a/QS
With higher Quality Scores you get higher Impression Share and a higher Ad Rank which both lead to more traffic to your website.
Higher Ad Rank
Ad Rank is used to determine the position your ad should receive on Google. It is directly proportional to Quality Score. The formula is: Ad Rank = max. CPC x QS
Impression Share (IS) is the percentage of search traffic for a keyword Google is willing to show your ad for. Higher Quality Score means a bigger share of available exposure.
Lower Min. Bids
First Page Bids (or min. bids) are the lowest bids necessary to show an ad on page 1 of Google. With higher Quality Score, you can bid low and still appear on the first page.
Your ad can sometimes show right above the organic search results. But it won't if you have lower Quality Score no matter how high your max. CPC is.
Sometimes your ad can show with multiple links to your website. But it only works if you have high enough Quality Scores.
Sometimes your ad can show with more info about your products (eg. an image). But it's only works if you have high Quality Scores.
Sometimes your ad can show with your address and a full map from Google Maps. But it only works if you have high Quality Scores.
Dynamic Keyword Insertion (DKI) is the ability to dynamically update your ad to include a keyword. But it only works if you have high Quality Scores.
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