Small businesses have tendency to focus only on short term results, mainly due to their budget constraints. That is also true when they are running their PPC and Adwords campaigns. They make all sort of short sighted decisions, such as suddenly reducing their bids on keywords, their daily budget, and even shutting off their PPC. In their defense, they claim to be very conversion oriented, which is a great thing, but one thing they must understand that PPC campaigns take some time to optimize, and as more data is collected, they get cheaper and more effective. So patients is a virtue.
Improving your quality score is important because it will reduce your CPC rate, and improve your ad position because more impressions for your ads, the higher your ad position will be, and that means better Click Through Rate (CTR), and hopefully better conversion.
Also improving your score means your ads show higher, and that could help you show ad extensions (site links, product images and extensions). See Adwords Ad Extensions.
Bidding high on keywords or increasing your daily budget isn’t the way you can improve your quality score. There are other factors such as using better keywords, better keyword and campaign organization, writing better ads (some refer to ad copy), more relevant landing pages, and consistent Adwords campaign in order to improve your historical data with Adwords.
I came across a case that gets into detail on how you can improve your Adwords quality score that I thought I share. The article is from back in 2007 but the tips are good till today.
Other relevant references;
Google Adwords Help; Quality Score
Testing External Factors for Quality Score





