How To Beat Google’s Ad Auction

There are a few unfair advantages available to anyone willing to put the time into understanding how advertising algorithms work.

Today I want to give you some insight on one of the most important.

For most advertisers Google makes up a huge percentage of online spend, so anything we can do to understand how its algorithm works will put us in a better standing to acquire more customers at a lower price.

At a basic level Google’s text ad algorithm is made up of four parts:

  1. Bid
  2. Quality Score
  3. Ad rank
  4. Ad formats

There is an automatic assumption that if you want better rankings and more traffic then you have to bid more, while that has truth in it, when you dig deeper you will find there are better ways of doing it.

Because the smart marketer always wants to generate more from less, this post will not only show you the components that make up the auction, but how to tilt the whole game in your favour and secure top spots, even if your competitors are bidding more.

To start, it’s worth looking at where the actual cost per click you pay comes from…

Knowing this shows us how important ad quality scores can be to increase performance if we don’t want to increase costs at the same time.

If quality scores are important it’s worth looking at how that is calculated which mainly come from the following… 

  1. Vertical QS tax (bid you are willing to pay)
  2. Historical performance
  3. Click through rate
  4. Overall account quality
  5. Ad copy relevance
  6. Keyword relevance
  7. Landing page relevance

Out of that list there are 6 things (2,3,4,5,6,7) not related to bidding that we can use to climb up the rankings.

This is important here’s why…

In this example we have 4 brands each bidding more than each other for the top spot. Yet the 1st result is paying 59% less because they got the rest of the 6 quality score indicators right.

Once you know the elements to optimise now you then need a system for doing it.

Let me show you an example with one of the most important: The Ad Copy.

Th is ad copy optimisation technique is called the Swiss Army Knife which was popularised by Perry Marshall to help us come up with a near unlimited amount of emotionally compelling copy that grabs attention.

The system works between the connections of your product and the things your customer cares about.

By connecting these relationships you can come up with so many different ways to find ads that engage your audience the most.

For example if you sell pet food this an example of it in use…

Regular:

Organic Pet Food | Low prices & Wide Ranges | Free P&P Avalible

Swiss PPC Ad:

Organic Pet Food Warning | Not All Organic Food Is Equal | Buy Real Organic Here

The first one is focused on the rational part of the brain, but as millions of spilt test have found emotionally driven ads like the second one connecting the product has with something the customer hates is likely to spark more emotion and drive to click.

In summary beating the algorithms can be done without pushing up your prices, it just requires careful and strategic thinking to discover what will best stand out to your end audience and working from there.

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