This post is in continuation with my previous post Google AdWords Ad Quality & Quality Score for Best Performance.
This post is about how quality score affects our advertising cost.
(Click to find more details about Quality Score)
Here is the formula to calculate the actual Cost per Click (CPC):
Actual CPC = Ad Rank to Beat/ Quality Score +$ 0.01
*Ad rank to beat means the ad rank of just lower ad (You will get more idea from table below)
Now, the important facts about Quality Score (which many people might don’t know):
Quality Score is not affected by keywords match type. This means that keywords minimum CPC & Ad position are not affected by match type. So if we have keyword with different matching option then their minimum bid will be same and keyword is not affected when a keyword variation triggers an ad.
However a keywords actual average CPC will be different depending upon its match type. This is because ad triggering is different for all match types like broad match & phrase match keywords trigger ads on a wider range of search queries than exact match keywords. Normally broad match keywords have higher avg. CPC than phrase & exact match keywords.
Conclusion:
If any advertise, which have higher bid amount may not necessarily be placed on higher position (as in above example).
Keywords match type does not have any impact on keywords quality score.
