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THIS is how the Google Ads algorithm works in 2024

A mental model for Google ad relevance and return targets

This 2024 lesson uses simplified examples to explain the relationship between relevance, customer intent, bids, and business results. Its numerical multipliers illustrate the speaker's model; they are not a disclosed formula for Google's actual auction.

Connect the ad with the customer's intent

The discussion contrasts a relevant product and message with a weaker match for the searcher. Review the keyword, ad, and landing page together. A useful experience follows the customer's question through to a page that helps answer it.

Read click costs in their business context

The examples show why a cheap click alone is not the objective. Consider conversion rate and order value alongside the amount paid for traffic. The business needs the purchases and contribution behind those clicks, not simply a low number in the CPC column.

Understand the purpose of a return target

The target discussion explains a tradeoff between the range of opportunities pursued and the efficiency required. Decide what the business can afford before choosing the target. Changing it alters the constraint; it does not repair an irrelevant offer or a poor website.

Use account evidence to refine the model

Check actual spend, purchases, value, and landing-page performance instead of relying on the illustrative math. Improve relevance where the customer experience is weak, then monitor the result. The model is a way to organize questions, with the account data needed to answer them.

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