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Lesson 5a: Quality and Performance Basics

How It Works

Objective: Learn about how quality impacts Google search results, ads, and the performance of your account. Find out how to monitor your performance.

Ad Relevance and Quality

People use Google because they find what they're looking for fast — whether it be the latest news, best candy bar, or closest pizzeria. This is the essence of relevance: Google provides users with the most relevant search results based on their search.

However, relevancy doesn't end with our search results. We also work to show the most relevant ads for every search query. This model works for users and advertisers alike: The more relevant the ads are, the more likely users are to click on your ads now and again in the future.

We measure relevancy for search and ads differently.

  • For search results, relevance and ranking are automatically determined by over 100 factors, including Google's patented PageRank algorithm.
  • For AdWords ads, the most important factor in relevance and ranking is the ad's quality, also called the Quality Score. This measurement is the strongest representation of how useful a user has found an ad to be and is central to the AdWords cost-per-click (CPC) pricing model.

How AdWords Monitors Performance

Quality-based bidding simply means that your keyword's Quality Score determines your minimum bid, or lowest amount you can pay for your ad to run. We use this system to analyze your keyword's performance, to decide whether or not to show your ad (and in what position), and to keep ads as relevant and cost-efficient as possible.

Here's how it works: When you enter a keyword into your account, we look at the following factors:

  1. Your Quality Score: We first determine your keyword's Quality Score. Your Quality Score is based on your keyword's clickthrough rate (CTR) on Google and the relevance of your ad text, keyword, and landing page.

  2. Your minimum bid: Next, we give your keyword a minimum bid based on your Quality Score. Keywords with a high Quality Score are assigned a low minimum bid, and vice versa.

  3. Your CPC bid: Lastly, we look at your CPC bid to determine your keyword state and ad eligibility to show on results pages.

    • If your CPC bid is the same or more than the keyword's minimum bid requirement, your keyword is eligible to trigger ads. It's assigned an active keyword state.

    • If your CPC bid is below the minimum bid requirement, your keyword won't trigger ads to appear. It's assigned an inactive for search keyword state.

How You Can Monitor Performance

Your account's performance is directly tied to the quality of your keywords, ad text, and bids. Due to the dynamic nature of search, your keyword's Quality Score, minimum bid, and keyword state can fluctuate often. Therefore, it's a good idea to keep regular tabs on your performance and make adjustments as needed.

To analyze your account performance quickly, check the following statistics:

  • Keyword Analysis page: Check the Keyword Analysis page to get a detailed view about your keyword’s performance — including how Quality Score impacts your keyword and ad’s performance, and how you can improve it. To launch this page, point your cursor over the magnifying glass icon beside any keyword in your account; then click one of the ‘Details and recommendations’ links.

  • Keyword Status: View the Status column on the 'Keywords' tab of your Ad Group Details page. Your keyword status indicates whether or not your keyword is triggering ads to appear on search results pages. As mentioned, each of your keywords (except any negative keywords) is identified by a keyword state. Here's the full breakdown:

    • Active: Active keywords have a high enough Quality Score and CPC bid to trigger ads. There's currently little risk to your advertising exposure.

    • Inactive for search: These keywords don't have a high enough Quality Score and CPC bid to trigger ads on Google and the search network (although these keywords may still trigger ads on the content network). This means that the minimum bid is higher than your CPC bid.

    • Disapproved: These keywords don't comply with our Editorial Guidelines or Content Policy and won't trigger ads until you correct the problem.

    • Paused/Deleted: These are keywords you've paused or deleted. They won't enter the ad auction and therefore won't trigger your ads.

    To learn how to enable a keyword that isn't running, visit the Keyword Status troubleshooting topic.

  • CTR Column: View the CTR column on your Campaign Summary page to see how well a campaign is performing. The higher the CTR, the better the campaign is probably doing.

  • Minimum bids: Check your minimum bid by running a Site/Keyword or an Ad Performance report. Choose the Keyword Min CPC field to see how much you're bidding. You can also edit your CPC bid to see your minimum bid. A low minimum bid usually means your ad is performing well.

  • Ads Diagnostic Tool: Point your mouse over the magnifying glass icon next to any keyword on your Ad Group Details page to see if that keyword is showing ads. This provides a quick way to see if active keywords are showing your ads, and if not, the reasons why. To learn more, visit the Ads Diagnostic Tool lesson.
For more in-depth performance tracking, we suggest that you set up conversion tracking or try Google Analytics.