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If you get customers through Google Adwords and haven't yet cared to see what your keyword Quality Score(QS) is or not bothered to remove non-performing keywords with low quality score....think again!! The negligence could be quite $$ intensive!

Just a brief background about how Google computes the Actual Cost per click value of your keywords:

Actual CPC = (Ad Rank of Your competitor/Your Keyword Quality Score) + $0.01

Ad Rank is computed as (Keyword Quality Score) * Max CPC

So if you wanted to beat (your competitor) Mike who has a keyword with $2.5 Max CPC (MAX CPC is maximum you wish to pay per click) & with a Quality Score(QS) of 8 and your keyword QS is 4, then here is what you would have to pay to do better than Mike for the same keyword:

What you pay per click = (2.5 * 8)  /4 + $0.01 = $5.01!! Which is twice of what Mike pays. This is because your keyword Quality score is low....

So if your QS doubles, then you can get the same performance at nearly half the budget, and likewise, it is cripples by twice, then you have to pay twice for the same performance.

Hope this helps you guys focus more on Quality Score....next time I will probably get more into QS details (if you are interested). Thanks! for the read.