Lee so elegantly described the issue of having a quality score and how it gives rise to the question of how manipulative Google has created leeway to be. In essence, an auction is based on tiered bidding structure where the highest bid is awarded the prize.

But in the arena of paid search we can't forget that revenue is only generated partially by chance. People use Google since it delivers the most relevant search results as quickly as anyone could possibly expect. So while at an auction, the operative function of the event is to vend goods. Participants come to purchase or mull over the potential purchase of some good that has measurable worth.

Google never set out to auction words…but they monetize search traffic, only due to people's faith in its ability to delivery quality search results and/or its default presence in a wide variety of high traffic web properties. People come to Google to search, and I suppose anyone who uses Google is putting something up for auction. Namely, the propensity to engage in business with a vendor or company that appears in Google as a natural consequence of their query.

Now those using AdWords to advertise are essentially endeavoring to interpret the behavior of those bringing this propensity to engage in some sort of business or desired behavior to the Google search engine. Certain terms may not be worth “bidding” on since the searcher isn't of the state of mind that would lead to a commercial or lead generating activity. (and you thought Sartre was a tough read, [is he being nothing??].

Many free and trial keyword research tools are available to help current or would be AdWords advertisers decide what people are looking for and which queries may lead to a transaction.

Where the rubber meets the road however is the cost per click which in theory should be based on your willingness to bid the highest amount. Now Google deliberately ruins the linearity between bid and position (#1 could equate to the auction winner, although this is a grey area as some would claim other positions convert better, this is another post entirely).

The interrupting factor is of course relevance and Google generally derides anyone who bids on a keyword and supplies landing page that has little to do with the keyword. If someone wanted to be on top and pay $5 CPC and the next guy would pay $.50 for the #2 spot, would it matter to you what type of landing page the aggressive bidder was using?

The issue of course as to why Google would offer the lesser bid the more prominent placement is what searchers will come to think of Google as a provider of both paid and natural search results if the somewhat illegitimate bidder has his or her way.

Anyone who bids on a keyword and provides an irrelevant landing page, content and or information to the searcher dilutes the value of the search utility. This is why the quality score, however cryptic and black box it may seem is ultimately on par with keeping the keyword market efficient while preserving the relevance of Google's search results.]]>