In a typical auction, the highest bidder always wins. In tendering public contracts, the lowest normally—if not always—wins. In AdWords, however, it’s not as simple as either.
There are times when the lowest bidder wins the prime spot in search ads. This is because the bid is only half the story in AdWords; the other half is the relevance and usefulness of the ad to the user. According to experts, a high-quality ad with a £1.00 bid can out bid a low-quality ad with twice the bid amount.
Supposedly the bid isn’t a problem for your business; your main focus is on improving your ad’s quality. The quality score depends on two factors: relevance and user experience. Relevance alone requires three elements—the keyword, ad, and URL—to be cohesive. Meanwhile, user experience refers to how the ad will help a user searching for something.
If your ad scored a full 10 (AdWords uses a 10-point scale, 10 being the highest), then you have something worthy of a heftier bid. If there’s room for improvement, Google suggests specificity in creating your ads. Instead of entering a broad search term like “used cars,” settle for a niche like “used toyota.” In addition, make your ads simple and straightforward.