We can save you money by auditing your ads and showing you how to improve the Google Quality Score of your keywords.  Analysis below will show you the range of savings that can be achieved.  We guarantee Minimum Google Quality Score of 7 for all your keywords.  Ask our competition and see if they give guarantee. Call us at (424) 200-2328

General Formula For Google Quality Score

Daily Savings = Bid (or better to use average cost per click rather than bid) x Daily Clicks x [1 – (Previous Quality Score/ Improved Quality Score)] 

Your Google ads position, compared to your competitor, depends on how much you bid and a Google Multiplier called “Quality Score”.  The higher you bid and the higher the Google “Quality Score”, the higher the position of your ads.  However, you can beat your competition by bidding lower and still attaining a higher position by optimization. We will show that this is also the best way to save money.  The typical savings for a medium size company can range from $50,000 to millions depending on your budget.  We will mathematically prove this. Here is how.  

What is “Google Quality Score“?  Google assigns each and every keyword a multiplier called “Quality Score”.   “Google Quality Score” ranges from 1 to 10.  If your Quality Score is 10 and you are bidding 2 Dollars, you are actually bidding 20 Dollars.  Google calls this number “Ad Rank”. 

$2 x 10 (Quality Score) = $20 (Your Ad Rank)

If your competition’s Quality Score is 5, then they should bid 4 Dollars to rank equal:

$4 x 5 (Quality Score) = $20  (Competitor Ad Rank)

Notice they have to bid twice your actual bid to rank equal. Simple analysis above should give you an intuitive idea about potential savings.

The Google Quality Score depends on:

1)  The relevance of the Google ads to the keywords, 

2)  Landing page experience

3)  Expected Click Through Rate (CTR) for your keyword.  

You have 100 percent control over the first two, namely relevance of Google ads to the keywords and also landing page experience, because you write the ads and you also design the landing page.  You have less control over expected click through rate.  For simplicity we can ignore expected click through rate for this analysis. However, if you want high Expected CTR, bid extremely high at the start of the campaign. Remember, only at the very start. I usually bid 500 Dollars. Later you can reduce this.

Assume our keyword is “Tax Relief”.  We are bidding 60 Dollars and attaining the top position.

Please see the image below.  

Notice Google has assigned us a Quality Score of 5 since our landing page is not fully optimized yet – the landing page experience is only Average and must be improved to Above Average.  As we explained above about Ad Rank, with a Google Quality Score of 5 you are actually bidding 300 Dollars.

$60 (your original bid) x 5 (Quality Score) =  $300  = Ad Rank

If our landing page experience can improve from Average to Above Average, then our quality score would be 7 and obviously you can bid lower to attain the same position and Ad Rank.  This is the crux of the analysis; improving the Quality Score can lower your bid while attaining the same position. 

We have experimented with Google ads many times and we believe this is the fact.  Please see the image below for another account we manage.  Notice Quality Score of 7 by improving Landing Page Experience from Average to Above Average.  Again, for simplicity of argument, we are ignoring the Expected Click Through Rate.  However, if you can get your Expected Click Through rate to average or even Above Average, your Quality Score will be either 8, 9, or 10 depending on your competitive Expected Clickthrough Rate.  

Let’s calculate saving by improving Google Quality Score from 5 to 7

We are bidding $60 and we have 10 clicks daily.  Cost is $600 per day.

Our Ad Rank =  $60 (bid) x 5 (Quality Score) =  $300

How much can we save if we increase our Quality Score from 5 to 7? 

To find savings we need to calculate the New Daily Bid after improving Quality Score from 5 to 7.

We still need an Ad Rank of 300 to attain the same top position.

$300 = New Daily Bid X 7 (New Quality Score) 

Hence: New Daily Bid = 300 / 7  = $42.85

Notice improvement in daily Bid = $60 – $42.85 = $17.15

Please note the improvement of $17.15 can also be considered improvement in CPC or Avg CPC.  This means you are actually improving your CPC. 

So Daily Saving is = 10  x 60 –  10 x 42.85 = 600 – 428.5 = $171.5  Daily

Yearly Savings = 365 x $171.5 = $62,597.5

Notice this savings is for only one keyword.  If you have 10 keywords with Quality Score of 5 that we can improve to 7, then your savings is 625,975 Dollars.  This is more than half million.

General Formula:

Daily Savings = Bid (or Average cost per click if CPC enhanced bidding) x Daily Clicks x [1 – (Previous Quality Score/ Improved Quality Score)] 

Testing formula for example above

Daily Savings = 60 x [1 – 5/7] = 60 x 10 x 0.285714 = $171.5

Again, notice this saving is only for one keyword.

100 Keywords: 365 x 100 x 171.5 = $6,259,750

Please notice in some situations where you are bidding CPC Enhanced and Google can increase your bid by 30 percent to get more conversions, you need to use Average cost per click rather than bid in the formula above.  In fact I believe it is always the best to use Average cost per click since you are actually paying what your competitor (position below you) is bidding.  For example if you are bidding 1000 Dollars and your competitor is bidding 10 Dollars, your cost is actually (10 +.5 = 10.5).  This is Google bidding rule.

If you are running a digital agency, you might think why do I need to save the client this money.  If you are paid by percentage of advertising budget, saving money might not be even wise.  But, this is completely wrong way of looking at this analysis.  If you do not touch the advertising budget, this saving will translate to more clicks for the client and hence will improve your agency performance.

In example above a saving of 171 Dollars means you can approximately get 3 more clicks per day for free.  If your landing page experience is above average, most probably your conversation is 30 percent or better, and hence 3 more clicks will give you an extra conversion per day.  In the long run, an extra conversion per day will make a big difference for your client.  In short, you will not get fired by the client.

Tips: If you want hight Expected CTR, Bid 1000 Dollars at the start.  Do not worry you will not pay 1000 Dollars per click. You will pay what the other guy is bidding below you.

Example of Conversions Results We Can Achieve; A phone call almost every minute.