Is Google Charging You An “Idiot Tax”?

If you’re a Google Adwords advertiser, you might be paying more than you really need to for your Google Adwords campaigns. If you’re not savvy, Google is likely charging you an “idiot tax” for being less relevant than they want  you to be. Andrew Goodman recently wrote about this in Badly-Managed AdWords Accounts — Worse for You Than for Google in which he discusses how a poorly managed Adwords account can often generate less ROI than a TV or Radio advertising campaign and the core reason for this is Google’s “Idiot Tax”.

What is Google’s Idiot Tax?

It’s where Google dings the quality score of your listings and forces you to pay more per click than you normally would have to pay. How can you tell if Google is charging you an idiot tax?

You know Google is probably charging you an idiot tax if…

  • You look under the Quality Score column of your keywords list and it shows a number between 1 and 4. Don’t see a Quality Score column? Click ‘Filters and views’ > ‘customize columns’, check off ‘Qual. Score’ and click the ‘Save’ button.
  • Your AdGroups contain only 1 ad.
  • Your CTR (Click Through Rate) is really low.
  • Your AdGroup contains tons of keywords.
  • Your AdGroup contains very broad keywords.
  • Your account doesn’t have much history.

Feel free to add your own to the list in the comments.

{ 8 comments… read them below or add one }

Jamie October 14, 2009 at 4:13 am

If you are bidding for top spot, a recent study showed conversion rate is the same regardless of ad position.

Reply

Mel October 14, 2009 at 3:28 pm

Jamies – That’s very interesting. Got a link for that study?

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Phil Green October 14, 2009 at 4:10 pm

Also, does CTR rate stay the same? If not then it might still be worth trying to outbid others and increasing your cost per conversion. I’d like to see this study also.

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Jamie October 15, 2009 at 12:04 am

Found the link: http://adwords.blogspot.com/2009/08/conversion-rates-dont-vary-much-with-ad.html

It is less a study and more a report from Google’s Chief Economist.

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Melvin Ram October 15, 2009 at 3:42 pm

Thanks! That’s very interesting. I’ll have to look at my own campaigns and see if this analysis holds up. It’s definitely believable.

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Pay Per Click Guy February 24, 2011 at 1:54 am

You can add to the list:

- Directing all your traffic to your home page
- Failure to mine traffic data for negative keywords
- Not tracking results
- Not creating seperate campaigns for the search and display network

Reply

Chas Suran May 5, 2011 at 2:19 pm

Good post! I have a random question for you. How do you get your blog indexed by bing? I have a related web blog.

Reply

melvinram May 15, 2011 at 9:28 am

You’ll find the info you need on our Search Engine Optimization page.

Reply

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