Google Explains How Search Ads Rank & Cost
Mar 12, 2009 at 9:31am ET by Barry Schwartz
The Inside AdWords Blog posted a video from Google’s Chef Economist, Hal Varian. The video shows how Google prices and ranks search ads in the AdWords system based on quality and bid. This is a really basic overview of the AdWords model, but I personally find the video to be incredibly easy to understand and great for beginners or for SEMs to show clients who are beginners.
Here is the video:
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Relevancy of the landing page is only a small part of the landing page formula, did you catch that? We don’t know exactly how much power this carries, but my guess is 30%.
If that is true…
Then landing page relevancy is really only:
30% x 10% = 3% of the quality score?!!
That can’t be, can it? Google prides itself on Relevancy so, how can this possibly be I ask you? I hope I’m wrong on this.