How to Start a Business

I received an email today asking how Google determines the position of paid ads.  It is confusing because the highest bid does not necessarily receive the highest spot. Apparently, the ad’s rank is important too.  The rank is measured on a scale of 1 to 10, 10 being the highest of course, and is based on relevance.  Relevance is determined by how well the ad matches the inquiry.  Let’s look at some real data to see if we can figure it out.  Look at the Google search below.

In this search, it appears that Joy of Socks (number 4) is the best programmed site, as it appears at the top of the free listings.  See our other blogs on organic Google rankings to see how to achieve this position.  Most people believe this is the best position to achieve.  I almost never click on the paid ads.

Look at what each site actually bid and where they ended up.  Funky Socks bid $8.80 and ended up in position 1. Bare Necessities bid the second most, $8.00, but was placed on the right hand side bar, not on the top.  Even though they were a high bidder, their ad was not placed in the best locations.  Why?  Because of ad quality.  Google decided that their ad’s quality was only a 6.  Google evaluates the text in the ad AND the landing page.  The landing pages must have good content and must load fast.  Here, Bare Necessities needs to work on their homepage, and should not increase their bid.  On the other hand, Wild Crazy compensates for a lower bid with a higher score on the quality of the homepage.

Related posts:

1. Google Ranking Improved by Length of URL Ownership
2. Google Link Building Strategies Reviewed
3. Google now factors site speed in determining ranking!
4. New Google Search Options
5. Alternative Use of Google AdWords