It used to be whoever bid the highest for a pay per click campaign got the highest ranking, but it doesnt work that way anymore. Google wants to display the most relevant ads for each keyword search so it introduced the Quality Score that ranks ads based on a number of factors and displays them accordingly.
Some of the Quality Score criteria includes historical click through rate if your keyword copy has a higher historical clickthrough rate than other advertisers, it gets a higher score; if the quality of your landing page is high youll also get a higher Quality Score; if your ad performs well on a variety of sites the Quality Score goes up; and the relevance of your ad is also considered.
Your Google Quality Score is extremely important because it determines the eligibility of your site to enter the Google ranking and the cost of your ad. Youll pay a lower cost per click rate with a higher ranking and receive a better ad position.
Discuss your Web marketing strategy with your agency to determine how you can increase your Google Adwords Quality Score. Make sure your ads are written and designed to generate the highest ranking for the most important keywords.