Click fraud is a well known type of Adwords fraud. Impression fraud is a lesser known tactic your competition could employ against your Adwords campaign.
The most obvious method of Adwords fraud is for your competitor to click your ad repeatedly. This called click fraud. The hope is that this will exhaust your daily budget and cause your ads to stop running.
Click fraud has the unintended side effect of raising your CTR. A higher CTR is a higher quality score and then a lower CPC bid. This offsets the damage, and prevents this fraud from becoming more rampant
A second type of fraud is impression fraud. Here, your competitor disables his ads and then proceeds to search for your common keywords. The attack is designed to create a large number of impressions of your ad with clicking the ad. This lowers your CTR. Your ad could have it's position lowered, or become disabled due to the lower CTR. This allows the competitor to obtain higher ad position.
There is no side effect offsetting impression fraud. However, an advertiser is not likely to turn off his ads during prime business hours. The fraudster would likely wait until the early morning hours where there is little traffic. This would make a good time for him to disable his ads and inflate the impressions on his competition. A spike in impressions during normally low traffic periods could be an indication of impression fraud.
Google is quite capable of recognizing multiple identical searches from a single computer or network. Adwords should be able to identify a large number of any impression fraud attempts. However there may be large, sophisticated networks that could appear to be from many different sources, thus fooling Google.
Saturday, January 30, 2010
Tuesday, January 26, 2010
Difference in actual versus maximum CPC
What is the difference between the actual CPC and the maximum CPC per bid? Knowing the answer can help corner that top position on Adwords and explode your traffic.
Every Adwords advertisers knows what the maximum CPC bid is. This is price you give Adwords as the absolute most you're willing to pay for a click.
The actual CPC is what you pay. These two numbers are almost never them same. You will almost always pay less in the actual CPC. The actual CPC is the cost to raise your ad above the next advertiser, based in part on your quality score.
For example, let's say your maximum CPC bid of $0.25 would get you the 3rd ad position. Adwords will charge you just what it costs to beat the 4th ad. This could be $0.10, $0.20 or the full $0.25.
This is known as a Vickrey Auction.
Another important point is that prior to 2007 Adwords based your ads position on the combination of the actual CPC and quality score. Since 2007, Google changed to base the position on the maximum CPC bid and the quality score.
The quality score component of this formula is closely related to your CTR. The better a CTR/ quality score, the cheaper it is for you to achieve top positions. For example, an ad with a 2% CTR and $0.25 max CPC bid is the same as an ad with a 1% CTR and a max $0.50 bid. If both bid $0.50, the ad with higher CTR wins.
You can use this to your advantage. You can set your maximum CPC bid much higher than you really want to pay. You know that the actual cost will be less. Plus, you can be assured of a higher ad position because Google will base the ad position on this inflated maximum CPC.
You could theoretically bid $100 per click. This would guarantee you the top ad position, because Google will base the ad position on the high bid. You would know that your actual CPC would be nowhere near $100, but instead just enough to beat out the second ad. A keyword with no competition would cost $0.05 or $0.10 assuming you had a good quality score.
Assuming you have a good CTR rate of 1% or better, it would impossible for any other advertiser to take the top position from you. Since google bases the top position on the maximum CPC, and you are at $100 per click with a good quality score and CTR, you would be unbeatable.
But there are some risks with inflating the maximum CPC. A competing advertiser could increase is maximum CPC. You would still have the top position, but it would more expensive to beat the number 2 ad. It's quite possible for the actual CPC to go beyond your budget or comfort level. You would need to be very vigilant to make sure you do not cross this threshold.
Every Adwords advertisers knows what the maximum CPC bid is. This is price you give Adwords as the absolute most you're willing to pay for a click.
The actual CPC is what you pay. These two numbers are almost never them same. You will almost always pay less in the actual CPC. The actual CPC is the cost to raise your ad above the next advertiser, based in part on your quality score.
For example, let's say your maximum CPC bid of $0.25 would get you the 3rd ad position. Adwords will charge you just what it costs to beat the 4th ad. This could be $0.10, $0.20 or the full $0.25.
This is known as a Vickrey Auction.
Another important point is that prior to 2007 Adwords based your ads position on the combination of the actual CPC and quality score. Since 2007, Google changed to base the position on the maximum CPC bid and the quality score.
The quality score component of this formula is closely related to your CTR. The better a CTR/ quality score, the cheaper it is for you to achieve top positions. For example, an ad with a 2% CTR and $0.25 max CPC bid is the same as an ad with a 1% CTR and a max $0.50 bid. If both bid $0.50, the ad with higher CTR wins.
You can use this to your advantage. You can set your maximum CPC bid much higher than you really want to pay. You know that the actual cost will be less. Plus, you can be assured of a higher ad position because Google will base the ad position on this inflated maximum CPC.
You could theoretically bid $100 per click. This would guarantee you the top ad position, because Google will base the ad position on the high bid. You would know that your actual CPC would be nowhere near $100, but instead just enough to beat out the second ad. A keyword with no competition would cost $0.05 or $0.10 assuming you had a good quality score.
Assuming you have a good CTR rate of 1% or better, it would impossible for any other advertiser to take the top position from you. Since google bases the top position on the maximum CPC, and you are at $100 per click with a good quality score and CTR, you would be unbeatable.
But there are some risks with inflating the maximum CPC. A competing advertiser could increase is maximum CPC. You would still have the top position, but it would more expensive to beat the number 2 ad. It's quite possible for the actual CPC to go beyond your budget or comfort level. You would need to be very vigilant to make sure you do not cross this threshold.
Saturday, January 23, 2010
Common myths regarding the Quality Score
Myth 1. Your account is assigned only one Quality Score
Your overall quality score is an aggregate of numerous quality scores. Each component of your account is assigned an individual score. Here is the break down, from top to bottom:
Overall Quality Score
Content Campaign Quality Score
Search Campaign Quality Score
Ad Group Quality Score
Ad Text Quality Score
Keyword Quality Score
This seems like a lot of scores that you have to keep in check; however, it's not so daunting if you keep your wits about you. When trying to improve your quality score you should focus on improving your ad texts and keywords and everything else will naturally fall into place.
Myth 2. Optimizing your account deletes your history
"Optimizing" your account consists of restructuring your campaigns and ad groups so that your keywords and ad texts are as specific and relevant as possible.
In order to deliver the best user experience, increase your click-through rate, and enhance your Quality Score, your keywords need to be tightly grouped and your ad texts need to highlight these keywords. As your account grows and matures you will learn how best to group your keywords so optimizing is a natural progression for account management.
When restructuring your account you will move keywords and ad texts from one ad group, or campaign, to another. Moving your keywords does not delete their history. However, your keywords may lose their history if you delete and re-insert them into another campaign or ad group. And moving keywords within your AdWords account is extremely easy when you use AdWords Editor.
Myth 3. Dynamic keyword insertion (DKI) is a sure-fire way to improve your Quality Score
DKI is a helpful tool. Simply using DKI does not automatically improve your quality score. Crafting your ad texts so that they are relevant and appealing to your audience (and you may utilize DKI to this effect), will increase your click-through rate, which can have a positive impact on your Quality Score.
Keep in mind that you should use DKI sparingly. Or, you should need to use it sparingly. When your ad groups have tightly themed keywords, then you shouldn't have to use DKI within your ad text. If the only way the majority of your keywords can appear within your ads is by using DKI (because you have hundreds of keywords in your ad group) then you should think about restructuring your campaign. And since optimizing your account doesn't delete your account history, what do you have to lose? In summary, DKI doesn't automatically help your Quality Score, and you shouldn't use it as a crutch.
Myth 4. Higher ad positions benefit your Quality Score
Increasing your bids to get a higher ad position is not a good way to enhance your Quality Score. Sure, if you increase your bids and a get higher position, this may increase your click-through rate which in turn could have a positive impact on your Quality Score. With this method you will certainly increase your cost-per-click, and that's the only certainty you'll get.
The Quality Score actually works in reverse of this theory. If you take measures to increase your click-through rate (other than raising bids) and create great landing pages, then your quality score and ad position should increase and your cost-per-click will actually decrease.
Your overall quality score is an aggregate of numerous quality scores. Each component of your account is assigned an individual score. Here is the break down, from top to bottom:
Overall Quality Score
Content Campaign Quality Score
Search Campaign Quality Score
Ad Group Quality Score
Ad Text Quality Score
Keyword Quality Score
This seems like a lot of scores that you have to keep in check; however, it's not so daunting if you keep your wits about you. When trying to improve your quality score you should focus on improving your ad texts and keywords and everything else will naturally fall into place.
Myth 2. Optimizing your account deletes your history
"Optimizing" your account consists of restructuring your campaigns and ad groups so that your keywords and ad texts are as specific and relevant as possible.
In order to deliver the best user experience, increase your click-through rate, and enhance your Quality Score, your keywords need to be tightly grouped and your ad texts need to highlight these keywords. As your account grows and matures you will learn how best to group your keywords so optimizing is a natural progression for account management.
When restructuring your account you will move keywords and ad texts from one ad group, or campaign, to another. Moving your keywords does not delete their history. However, your keywords may lose their history if you delete and re-insert them into another campaign or ad group. And moving keywords within your AdWords account is extremely easy when you use AdWords Editor.
Myth 3. Dynamic keyword insertion (DKI) is a sure-fire way to improve your Quality Score
DKI is a helpful tool. Simply using DKI does not automatically improve your quality score. Crafting your ad texts so that they are relevant and appealing to your audience (and you may utilize DKI to this effect), will increase your click-through rate, which can have a positive impact on your Quality Score.
Keep in mind that you should use DKI sparingly. Or, you should need to use it sparingly. When your ad groups have tightly themed keywords, then you shouldn't have to use DKI within your ad text. If the only way the majority of your keywords can appear within your ads is by using DKI (because you have hundreds of keywords in your ad group) then you should think about restructuring your campaign. And since optimizing your account doesn't delete your account history, what do you have to lose? In summary, DKI doesn't automatically help your Quality Score, and you shouldn't use it as a crutch.
Myth 4. Higher ad positions benefit your Quality Score
Increasing your bids to get a higher ad position is not a good way to enhance your Quality Score. Sure, if you increase your bids and a get higher position, this may increase your click-through rate which in turn could have a positive impact on your Quality Score. With this method you will certainly increase your cost-per-click, and that's the only certainty you'll get.
The Quality Score actually works in reverse of this theory. If you take measures to increase your click-through rate (other than raising bids) and create great landing pages, then your quality score and ad position should increase and your cost-per-click will actually decrease.
Sunday, January 17, 2010
Inside AdWords: Click-to-play video ads for AdWords
We're very excited to announce the release of click-to-play video ads on the content network. Here's Bismarck, from the Video Ads team, with the details on this new feature:
In the coming days, we will be adding click-to-play video ads to the line-up of text, Flash and image ad formats currently supported by the Google content network. At launch, video ads will be available to AdWords advertisers in the US, Canada and Japan - but we plan to roll them out to other regions shortly.
Now, let's talk about the details.
First, as with all AdWords ad formats, video ads will compete for placement on sites in the Google content network with other text, Flash and image ads -- and, as with our other image ad placements, you can choose to bid on a CPC or CPM basis.
Second, these ads will be supported by both site- and keyword-targeted campaigns. You can choose to serve your video ad on a specific site or on pages in our content network that relate to your product or service. As always, you have the ability to geo-target your video ads internationally, nationally, or locally.
Finally, unlike some intrusive advertising, users will have complete control. When a page loads, only a static image will be visible; the video will not start playing until the user initiates it. He or she will be able to advance the video, pause it, adjust the volume or click through to the advertiser's site.
But, you may say, video is only for big branding oriented advertisers. We beg to differ. This feature makes video ads much more accessible to all advertisers. Now, an owner of a small bed & breakfast in Lake Tahoe can put a video tour of his beautiful chalet right next to an article that talks about skiing the epic slopes of Squaw Valley.
Inside AdWords: Click-to-play video ads for AdWords
In the coming days, we will be adding click-to-play video ads to the line-up of text, Flash and image ad formats currently supported by the Google content network. At launch, video ads will be available to AdWords advertisers in the US, Canada and Japan - but we plan to roll them out to other regions shortly.
Now, let's talk about the details.
First, as with all AdWords ad formats, video ads will compete for placement on sites in the Google content network with other text, Flash and image ads -- and, as with our other image ad placements, you can choose to bid on a CPC or CPM basis.
Second, these ads will be supported by both site- and keyword-targeted campaigns. You can choose to serve your video ad on a specific site or on pages in our content network that relate to your product or service. As always, you have the ability to geo-target your video ads internationally, nationally, or locally.
Finally, unlike some intrusive advertising, users will have complete control. When a page loads, only a static image will be visible; the video will not start playing until the user initiates it. He or she will be able to advance the video, pause it, adjust the volume or click through to the advertiser's site.
But, you may say, video is only for big branding oriented advertisers. We beg to differ. This feature makes video ads much more accessible to all advertisers. Now, an owner of a small bed & breakfast in Lake Tahoe can put a video tour of his beautiful chalet right next to an article that talks about skiing the epic slopes of Squaw Valley.
Inside AdWords: Click-to-play video ads for AdWords
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