The quality factor is the biggest lever to save costs in the AdWords account. Google rates the click rate (CTR), ad relevance and landing page experience with a value of 1-10.

The higher the quality factor, the more money you save through lower click prices and get better ad positions.

Why is the quality factor so important?

Let’s assume that one of your keywords has a factor of 8.

You offer a click price of 0,50€ on it.

So for the value 4 => quality factor 8 x 0,5€ you get click price

Your competitor is bidding on the same search term. However, they only have a rating of 1, so they would have to offer €4 to compete with you for the ad position.

As you can see, a good quality factor can save you a lot of money!