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Search Engine Marketing Auction

Search Engine Marketing Auction

Hello, in previous articles we talked about the importance of search engine marketing as a great way to show ads at the right time, that is, while potential customers are searching for your products or services, but do you know how search engine marketing works?

Search engine marketing is based on the bidding system, so in this article we will discuss what an auction is like and provide an example that will help you use search engine marketing in the best way for your business.

How is the auction via search engines?

Try to search for a well-known service “such as wedding photography”, for example, you will see in the middle of the page “free results”, which are those that the site owner does not pay for appearing in the search pages, and at the top right and bottom of the page you will see paid results (i.e. ads) specified Search engines.

The number of boxes in which ads will appear on each page, so the competition between advertisers begins in an auction to win these boxes.

So when searching for a wedding photographer, the ads that appear in the search engine are the result of this auction and the winning ads appear in prominent boxes within the results page usually.

What is at the top of the page As for advertisers who are not so lucky, their ads appear in less distinct boxes.

Well, you may be wondering now: what is this auction like? It is simply like most regular auctions where each participant has to bid, which affects your performance in the auction but not only the bid, you must also ensure that your ad is relevant to the topic of the search and this is a very important point.

SUMMARY In order to achieve success in this type of auction, you must provide:

  • Competitive price offer
  • Relevant and strong advertising content

Providing these two factors is the secret to success in search engine marketing. Let's look at these two factors.

SeeHow Mobile Devices Evolved

1. Competitive price offer

Dear Reader First, Bidding Let's say you intend to pay up to $3 per click on your ad when searching for wedding photography services. This price is often known as "Max CPC".

Let's say your competitor sets $1 as the max CPC, which means your bid is more valuable so you'll bid on it in the auction and a business can change their max CPC at any time, so be sure to monitor your bids regularly to make sure you're getting the performance you want. 

But as I mentioned before, the auction is not only about bids, the relevance of the content is also an important factor.

2. Relevant and strong advertising content

Content relevance is a scale, usually from one to ten, to assess the relevance of your ads to the topic a person is searching for and search engines such as Bing and Google indicate this with your Quality Score. Let's say someone performs a search using the term “wedding photography”, and your ad title is “wedding photography in Dubai.”

Your ad is likely to be considered highly relevant by the search engine, and you may get a high quality score.

But what if the title of your ad was “wedding services in Dubai”? It is true that both ads refer to weddings, but the latter is less relevant because it talks about wedding services in general and not about wedding photography.

But what is the significance of these quality points? For example, when two businesses offer equal bids, the search engine selects the business with more Quality Score to appear higher on the search results page.

If you need to improve your SEO performance, the best way to do that is to constantly review your advertising campaigns to ensure that your ads are relevant to relevant search topics.

SeeHow to Make Your Website Searchable

An example that will help you use search engine marketing in the best way for your business

Maximum CPC and Quality Score are the two main factors that determine your performance in the auction.

Well, let's continue with the same scenario and this time assume that the two businesses are competing for the same keyword “wedding photography.”

Ziad offered four dollars as a maximum CPC, but succeeded in achieving only three quality points out of ten, while “Madeha” offered three Max CPC dollars and its quality level is a full ten degrees with this information we can know the outcome of the auction before it is even announced.

With a simple calculation to calculate what is known as "ad rank", Ziad got a total of twelve points in the auction, which is (after multiplying the price by the degree of quality), while "Madeha" scored thirty points, despite the fact that the bid you submitted less. This means that despite her bidding $1 less than Ziad's, she won the auction and ranked higher than Ziad on the page.

Such scenarios abound in search engine marketing auctions, and if this indicates anything, it indicates that you cannot “buy your way to the top” with money only.

Your ad was not relevant and you got a low quality score, it will be difficult for you to compete in fact if your relevance score is too low, it is likely that search engines will never show your ad.

To improve your performance, you should focus on improving the relevance of all your ads and always making sure that they match the terms that customers are searching for at the moment.

This will enable you to win better positions for your ads without having to bid more than necessary.

SeeDisplay Ads Campaigns for Mobile Devices

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