AdgroupOptimizer utilizes a keyword entity extraction algorithm that is created to manage millions of search terms for very large accounts. The Keyword Management System (KMS) helps achieve optimal account setup that allows the Adgroup Optimizer to automatically optimize a pay-per-click account. By ensuring the Search Query to the AdText to Destination Landing page are all in align, an account historic performance never deteriorate. This ultimately results in users see and clicking on the most relevant Sponsor Ads, which rewards each keywords with the highest possible Quality Score.
Some search queries are relevant to your product or service offerings and trigger the correct ads. Other search terms are relevant but trigger the incorrect ads. A user still might click on the ad but will land on landing page that does not offer the products or service they are seeking. And still there are totally irrelevant searches that cause your ads to appear, wasting AdSpend. Worst, they can cause high numbers of impressions with low click-thru. This results in your Adwords account getting poor account performance or low keyword quality score. Without the human aspect to monitor and an optimization system to correct his ad display error, an account historic performance decline over time, driving cost up. Peole search in some many different way and at different stage of the buying cycle. A high intentful customer will search with modifier words that represent the last stage in the buying cycle. Whereas, a researcher of information will search the same using the same keywords with non-commerce modifier words in the search query. Identifying the different level of intent in a search query allows one to maximize their optimization effort.
Unlike bidding software that bids up or down to achieved positive ROI, Account Optimization is the process of reorganizing search query into the most relevant AdGroup to obtain maximal click & impression shares that results in more qualifying visitors at a lower cost per click. Optimization of an account focuses on the Quality Score (QS) aspect of an optimization strategy.
QS * Max CPC Bid & (the expected impact from your ad extensions & formats) = AdRank
Price you pay per click * your QS = Bid 2 * QS 2
Price you pay per click = (Bid 2 * QS 2) / your QS
Bid management software is one method of the optimization strategy. However, its downfall is that a bidding software could potentially lower the ad position of a good keyword that is creating lots of conversion due to the sole purpose of making that term profitable. Whereas optimization of QS, allows the same goal to be achieved without having to scarif ad position or market share of that specific term. Optimization of QS allows the bid to stay the same while it reduces the cost per click and increase adrank at the same time as making this specific search term profitability. In Chess, there is a strategy where one single move in the right position will allow the next move to capture either one or two opponent players. Optimization of Quality Score instead of implementation of bid management solely will achieve this same benefit for your account.
Search Term --> to Adtext --> to Landing page Relevancy
The difference between a Bid Management Software like a Adwords account optimization Software is that one concentrate on manipulating keyword bid to gain profitability for a certain keyword.