Paid search in Google is the term we use for advertising in Google search engine. Ads are shown at the top (and bottom) in a Google's Search Engine Result Page after a query has been entered; this is when the auction starts. The advertiser will only pay Google whenever somebody clicks on their ad. How much is Paid Per Click depends on several different factors.
Google search results and Ads
A Search Ad in Google appears on top the Search Engine Result Page after searching for in this example best tours paris. For popular searches Google is showing up to four Ads before a user sees the first organic search result. Especially for searches on smaller screens such as smartphones or tablets the first organic search results are getting harder to find. A Google Ad looks like an organic search result with a little Ad sign in front. Especially for searches on smaller screens such as smartphones or tablets the first organic search results are getting harder to find.
Now how much is paid for 1 click on a Google Ad?
The price paid for 1 click is 1 cent more than the Ad Rank of the competition / your quality score. As you can see the cost per click depends for a part on the competition advertising for the same search terms. Some keywords are more popular than others where keywords as Insurance, Attorney, Loans or Mortgage can cost up to $50 per click..
Which position are Ads shown?
The Ad rank is for one part based on the Cost per Click bid. This is the maximum bid one one is willing to pay for 1 click for a specific keyword. On the other hand the Ad Rank is based on the Quality Score. This score is Google's metric on how relevant and useful the ad is to the user. The most important factors here are:
- expected Click Through Rate of the user
- the relevance of the Ad
- landing page the user is redirected to
The first position in Google Ad results is not simply a fact of the highest bid. The quality score which can be seen as a metric for the user experience (the user's wants, needs etc) is of high importance too! Whether the first position is always the best is another story ..