Friday, October 26, 2007

Google's PPC Algorithm

Clay Sinclair


Google’s algorithm associated with PPC does several different things. It determines the keyword relevancy to the ad copy and website and the ad copy relevancy to the website. Google also measures the time spent on a website (from the time the ad is clicked to the time the user returns to Google to continue searching for the same or similar keywords.) They also measure conversion rates of sites via Google conversion tracking. All of these elements determine a keyword’s quality score (along with click thru rates as well).


Algorithms + Pay Per Click = Profit


Look up the term “algorithm” in the dictionary and you find that it means “rules for solving a problem.” Google uses algorithms to solve problems of relating the proper keywords: where to place them, which keywords work, how and when they should be placed. Your actual profit comes from several directions of the algorithm.


Google, as a search engine, has to measure the relevancy of the keyword to your ad and the website. It also measures the relevancy of the ad copy to the website. For example, if you have a website totally dedicated to football, but your PPC Advertising only uses the term “ball”, the search engine is more likely to rank “ball” lower than “football”. You have to consider terms that are both the normal and that are outside the normal.


Parents measure how well their child does in school by his/her homework and report cards. Google and the other search engines measure how well your site does by how much time is spent visiting the site (from the first click) and the users that return to the site. What do your PPC Management and your site say about your business/organization.


Monitor your conversion rates. Google’s conversation tracking gives you a first hand account of how well the PPC Advertising is helping your overall site. Ask your Pay Per Click Management professional about the quality score of all of your keywords. This will help determine your competition and find out your projected profit margin.


Pay Per Click Edge:
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