Hal Varian – Quality Score and The Google Ad Auction

Hal Varian is the chief economist at Google, and certainly one of the main forces behind the economics of the Adwords Auction AND Quality Score.   Google’s had this video available for over a year now, but NOT ONE PERSON I’ve spoken with about their Quality Score concerns had watched it. (Thanks to Rob Sieracki, Chief Operating Officer at RocketClicks.com for pointing this out to me)

In any case, it’s definitely THE starting point for understanding the components of Quality Score, especially the key role Click Through Rates play, and the VERY specific economic impact Quality Score has on bid price.  It’s something which EVERY AdWords advertiser should watch.  (Especially since it’s under 10 minutes!)

In my humble opinion, Quality Score is all about “Getting them there and keeping them there with relevant content”… which means (mathematically) a high Click Through Rate, a Long Time Spent on the Site, and a Low Bounce Rate.  What that means in Plain English, however, is that you simply have to know what your best prospects want, on an adgroup by adgroup level, if not down to the keyword.  What’s the best way to do that?  Join the hyper-responsive marketing club of course!

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