PPC Advertising

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Advanced Operations Management - S2

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Fanta

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MODEL OF SERVICE DELIVERY

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PPC Advertising

4. Click Cost

by increasing your quality score you can decrease the amount you have to pay

The price to pay is determined by the Ad Rank of the advertiser below you, divided by the Quality Score of your ad

Minimum amount as necessary to retain your position

3. Ad Rank

low quality Ad Rank (ex. 4) doesn't get shown

(Max bid) X (Quality Score) = Ad Rank

2. Quality Score

landing page quality - an ad is only useful to the user if it lthe landing page at least let them find what they were looking for

be transparent about the nature of your business | terms and conditions, privacy policy...

minimum pop-ups or pop-unders

quick load times

easily navegable

original content

relevant content

relevancy - of the ad and search query - only useful ads are displayed to users

CTR - users vote with their click - this is the biggest metric for quality standards

2. With no quality standards the highest bidder (advertiser) goes on the 1st position and so on.

1. Google and the other search engines wants to do a good experience between the user and advertiser

Search Engine - wants to make a good experience between the advertiser and the user

the user - wants to see relevant ads

advertiser - should show relevant ads