How does AdWords track performance?

AdWords uses a dynamic variable called ‘Quality Score’ that determines the keyword relevancy. A Quality Score is calculated every time your keyword matches a search query entered by the user. Quality Score measures your keyword’s click-through rate (CTR) on Google (number of times when the user responds to your Ad) and monitors the relevance of your ad text, keyword, and landing page; and several other relevance factors.

How does Google use the Quality Score data?

Quality Score is used in several different ways, including influencing your keywords’ average cost-per-click prices (CPCs) and the first page bid estimates that decide where your Ad will be positioned. It also determines if a keyword is eligible to enter the ad auction
that occurs when a user enters a relevant keyword. In general, the higher your Quality Score, the lower your advertising costs and the better your ad position.

How does the Quality Score help?

Quality Score helps ensure that only the most relevant and targeted ads appear to users on Google and the Google Network showing the user exactly what he/she was looking for. It simply helps in finding out what your audience thinks about your Ads and whether they find it relevant enough.Specific ads tend to earn a higher number of clicks, appear higher on the rankings, and bring you the most success.

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Advertising, Google, PPC - Google Adwords