What is Google Ads?
Google Ads is a paid advertising platform offered by Google. It’s a way of getting your products or services to appear at the top of Google search results.
Google Ads is based on an auction process, where you (alongside other businesses) bid on keywords to get your ad to show. To bid on a keyword, you set a maximum amount you’re willing to pay for each click through to your site. This is called Cost Per Click (CPC).
The bidding auction
For every Google search, an automated auction takes place in real-time. So for example, when someone searches for ‘coffee shops in North Beach, San Francisco’ the Google Ads system finds all the Ad keywords that match this search term. From these, it discounts any that aren’t relevant and then ranks the remaining ones according to their Ad Rank.
What is Ad Rank?
Ad Rank is Google’s way of determining which order to place the competing ads on its search results page. Ads with a higher Ad Rank show in higher positions, and ads with lower Ad Rank show in lower positions.
Google doesn’t give away its exact formula, but it follows something like this:
CPC bid: The maximum amount you’re willing to pay per click for individual or grouped keywords.
Quality score: All the factors around your ad, including the quality and relevancy of your keywords and landing page, the expected Click Through Rate (CTR), the competitiveness of the auction and the context of the search (e.g. location, device and time).
Since the auction process is repeated for every new search, the results can vary depending on the competition at that moment in time. It’s normal to see a change in your ad’s position on the page with every new search.
The highest bid doesn't always win
The first listing in a search engine result doesn't necessarily have the highest bid behind it, but it will have the highest Ad Rank. As shown above, you could be paying less than a competitor yet outrank it by multiple positions if your ads are better.
How much do you end up paying?
Your actual CPC is the final amount you’re charged for a click. It’s often less than what you set as your CPC bid, because you only pay what’s minimally required to clear the Ad Rank threshold and the Ad Rank of the competitor below you. If there are no competitors ranked below, you’ll only pay the reserved price.
We help you win the bidding auction
Cobiro’s sophisticated bid engine technology improves your Google Ads strategy by optimizing your bidding approach in preparation for an auction. It helps to increase your CTR while keeping your CPCs as low as possible, delivering better results for your ads.
How Cobiro’s bid engine works
Cobiro’s bid engine follows a rules-based methodology, whereby your bid is adjusted depending on certain criteria being met. The logic is based on past data, which creates quick decisions and judgements - crucial for Google Ad auctions. And it’s all done automatically, so you don’t have to do anything.
Your initial ad may not be receiving many impressions (your ad being shown) in search results. To help with this, we adjust your CPC, depending on a defined set of criteria. For example, if you have a low Quality Score we may increase your CPC by 20% to help you do better in an auction. If your ad has a high Quality Score but isn’t getting impressions, we may increase your CPC to 70% of the estimated top of the page bid (which is the bid you likely need to set for your ad to be shown among the ads at the top of the first page of search results).
We make sure you don’t overpay for bids and help you to achieve a good balance between a position towards the top of search results and one at the very top. Every segment is different, but sometimes, the top position can be more expensive than necessary.
It’s also important to make sure your bids are not set too low, as this reduces your chance of meeting the Ad Rank threshold to compete. If it’s judged to be underpriced then your bid is increased by a sufficient amount.
It’s worth noting that the maximum CPC you’re willing to pay will never be exceeded.
Keeping your ads optimized
When there’s enough data, such as a certain amount of clicks or impressions, Cobiro’s bid engine helps your ads to keep performing at their best.
Maximizing clicks: When you’re experiencing a higher CPC, we’ll decrease your target CPC by a certain percentage. By preventing you from overpaying, you’ll have more budget left over for more clicks.
Maximizing conversions: As you’re gaining ground at a higher cost per conversion (CPA), this may also need to be decreased accordingly, for the same reason.
Handbrake feature: Your keywords are paused if they’re generating a lot of impressions but not receiving clicks, suggesting that these specific keywords are not relevant to your target audience. You might be ranking well for ‘tea’, but what you’re actually selling is a certain type of tea that’s recommended for a specific medical condition.