This post covers how Google AdWords works behind-the-scenes. We like to share just how complex Google AdWords are, and why, as a Columbus Ohio web design firm, we don't take on this sub-specialty ourselves. We leave it to companies that specialize in this area.

Most folks know Google AdWords is a lot about bidding on keywords. However, one would, understandably, think that any company that wants to use Google AdWords to be in the #1 spot, might pay the same price. As would those wanting to to be in the #2 or #3 position for certain keywords. But you'd be wrong.

Google uses an auction system, which results in the popular understanding that you can "bid" on certain keywords to determine your ad ranking, and based on price alone you can show up in the #1 spot.

There's a thing called the "Google Quality Score," and depending on a bunch of factors about your website, Google actually picks and chooses which website appears in the number 1 position... even if another company is willing to pay more per click. Same with what ad appears in the #2, #3 or #4 spot. It's a complex algorithm, but we'll try to explain it as simply as possible.

Google's version of the auction

In Google's version, lets use 3 Chicago home builders, all wanting to be in the #1 spot for the term for the term "Chicago home builders."

1. Chicago home builder #1 bids $5.00 to be in the #1 spot,
2. Chicago home builder #2 bids $4.00 for the same term, expecting to be in the #2 spot, and
3. Chicago home builder #3 bids $3.00, expecting to be in the #3 spot.

In a normal auction, the highest bidder is in the top spot, so you'd expect Chicago home builder #1 to get the #1 AdWord spot.

However, if Chicago home builder #2 (or #3) have a better website (in Google's eyes) than Chicago home builder #1, then Chicago home builder #2 or #3 will have the top spot.

What determines a good website

If Google determines their audience would respond to your website better, not only would they pay less than their bid, but they would also appear higher than than tey expected.

So what factors do they consider?

• If your site is responsive (ie: mobile-friendly),
• The "Expected Click-Through Rate."
  From Google's experience, they can make a pretty good guess about how often your ad would be clicked on, when shown. Historical data from millions click through rates help them determine what ad their audience would most likely respond to,
• The landing page experience
  An ad is more useful to Google's audience if the content on the corresponding landing page is well-done and helps the user more quickly complete their task or find the information they want. So it has to be easy to navigate, have original content (and this is where the cheaters get pinged), be transparent about what it is your offering your audience. Also, if you gather information from the user, explain how you intend to use their personal information,
• Ad relevance
  Google analyzes the text in the ad to see if it matches well to your landing page and website.This helps measure the ad to the user and make sure only relevant ads are shown. It also prevents nefarious advertisers from just paying their way to get to the top of a search term that is unrelated to their product or service

So while 3 different home builders (or plastic surgeons or restaurants) want to bid on the same keywords, it's not completely up to the respective businesses to determine where their AdWords appears based on the price they're willing to pay.

We'll guide you to make the right choice

So while we've been asked by clients over the years if we can institute a simple Google AdWords program for them. Ass you've gathered by now, we suggest they work with one of the many SEM companies, because, over the years we've also found running Google AdWords is an über complex specialty that is best left to companies that focus only on that.

We've worked with a three of them over the past year and have learned a bit about the differences between, and specialties of, each individual company. There's also a difference on how they charge:

• One has an $800 set up fee, and charges a $500 monthly management fee in addition to the $2,000 (or whatever) a month cost, but they don’t have a monthly contract minimum.
• The other includes their management fee  in the $2,000 (or whatever) a month cost, but they require a 6-month minimum contract (though they are a little flexible).

So there are many things to consider, and if you want to use Google AdWords, we can help you pick the right company.