It takes money to make money and the more you have the more you will be seen, right? Well, when it comes to paid digital tactics, that not may be the case. In today’s episode of The Marketing Myths Podcast, Tobaria and Aaron talk through the myth that the more money you throw at your paid search and display campaigns the higher your ads will rank and the more they will be seen. Enjoy!

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Show Notes

I think we’re both familiar with the thought that if we want to have the best placements within Google Ads, all we need to do is throw some more money at it.

Well, that’s not true all of the time.

One instance that we did find this to be true is when you’re trying to use Managed Placements on the Google Display Network.

Before we jump too far into the weeds, let’s define what Managed Placements are.

Managed Placements are just a feature on Google where you tell them where you want your ads to run across. So you can think about it as site-specific advertising.

According to Google’s help article on Managed Placements, this may be the one time where you may need higher bids in order to place on those top quality websites.

However, if we look at it from the Google Search network perspective, Google’s Ad Rank formula comes in play a little more when it comes to determining placements.

The obvious question here is what is Ad Rank?

Ad Rank is just a value used to determine your ad position and whether your ads will show at all.

When it comes to ad rank, here’s everything that goes into this magical formula:

Bid Amount, your Auction-time ad quality (expected click-through rate, ad relevance (so your targeting) and landing page experience), the Ad Rank thresholds, context of the persons search (so think location, device, time of search, etc.) and the expected impact of extensions that you’ve added on to your search campaign.

Wordstream had a good blog on how if you just increase your bids, you’ll get fewer clicks.

One thing that they say is you have to watch out for is when you raise your bids. You will pay more. If you raise your bid, and your bid alone, you’ll see that you will get less traffic for your budget. So you want to move those 2 in tandem.