How does paid SEO work

What is SEA? Search engine advertising basics

In principle, the display of an advertisement in the search engine is free of charge. Advertisers are only asked to pay when an Internet user clicks on the advertising link in the advertisement and thus arrives at the stored target page. Search engine advertising is thus carried out based on click prices (cost per click, CPC). How much the click is worth to an advertiser can determine for himself. However, the amount of the bid is decisive for whether Google displays your ad when a search query is made. The allocation of advertising spaces takes place in one Auction process, the so-called Real time bidding.

Real Time Bidding: the auction process in the search engine

Every time an Internet user searches the web, search engines such as Google check which advertisements match the search terms used and how helpful they are for the user.

Especially with high-volume keywords from the commercial sector that promise great advertising success, there are usually several potentially suitable ads that have to be rated in a split second and ranked for their relevance. An important criterion for ad rank is the advertiser's CPC. In order to provide users with advertisements that are as helpful as possible, Google includes not only the CPC but also the so-called quality factor in the ad ranking. A particularly high ad rank means an increased chance that your own ad will be displayed when a corresponding search query is made (in a particularly prominent place). Since the ad rank is determined by the CPCs and the Quality Score, this value can be determined by the following equation:

Ad Rank = Maximum CPC Bid x Quality Score

CPC bids

With the maximum CPC, an advertiser sets the maximum price that he would like to pay for a click on an ads ad. The higher the bid, the more likely it is that the ad will appear in a prominent position in search results. Google's advertising platform grants advertisers a high degree of transparency and insight into the running costs of search engine advertising. With fixed monthly and daily budgets, it is possible to define exactly how much money should be invested in SEA on a daily basis. Google only places advertisements for relevant search terms until the budget for the day has been used up. A monthly budget of 3,000 euros could thus be spread over 30 days at 100 euros each. How much advertising can be realized with it per day, however, depends on the click costs of each individual ad. Depending on the competitive pressure, these vary between a few cents and several euros per click. Google's quality factor In order to prevent ads that offer users no added value from ending up at the top of the search results due to high advertising budgets, Google uses a so-called quality factor as an evaluation measure for the ad ranking in addition to the CPC requirement. This is based on the requirements of the users and includes their click and visitor behavior in the positioning. With well thought-out SEA campaigns that are geared towards high-quality content, you rank significantly better in the search engine, as they offer the site visitor a benefit and invite them to stay. Conversely, advertising success can rarely be achieved solely on the basis of high CPC bids. According to Google, the following components of the quality factor are decisive for a good ad rank:

  • Expected click-through rate of an ad: This criterion is based on the frequency of ad impressions and the number of clicks an ad has already received. Ads that have a high click-through rate are considered more relevant.
  • CTR of the displayed URL: If the URL used in the ad has already received many clicks, the quality factor of the ad will also be set higher. The displayed URL does not have to match the link target.
  • Landing page quality: If a user arrives through the advertisement on a landing page that is characterized by relevance, transparency and user-friendliness, this increases the ad rank.
  • Relevance of the ad text: Ads that are to occupy top positions must perfectly match the search query in terms of title and ad text. The more relevant the ad text, the better the ranking.