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Branding Determines Your Advertising Costs: What the Data Says

Max Franken
Max Franken
7 min read
Isometric illustration of a Quality Score meter linking brand experience to advertising costs

The click to your website is in, but before you know it the visitor is gone. Within three seconds it is decided whether the site is worth the effort, or whether the visitor clicks away immediately. When we at Extendure take over a new Google Ads account, we can tell within a week whether the branding is in order. Not because we go looking for it, but because it is visible in the Quality Score, the bounce rate and the conversion rate.

Most advertisers optimise the campaign itself: better keywords, sharper bidding strategies and tighter audience management. What is often forgotten is that what happens after the click is at least as decisive for the result. That is something we measure daily. The signals in your advertising data that reveal branding is the problem are listed below:

  • A Quality Score below 7, combined with a low landing page experience.
  • A high bounce rate on ad traffic while organic traffic on the same page scores normally.
  • A short session duration on the pages where campaign traffic comes in.

Do you see these signals in your data? Then the campaign is not the problem. The branding is.

How Google Ads determines how much you pay

To understand why branding directly influences your advertising costs, it is important to know how Google Ads determines how much you pay. Google Ads does not work on the basis of who bids the most. The platform rewards relevance. Google does this through the Quality Score: a diagnostic score that shows how Google assesses the quality of your ad and landing page. That same quality assessment determines, in the auction, how much you pay per click.

This Quality Score consists of three components:

  1. Expected click-through rate (expected CTR): how likely is it that someone clicks on your ad?
  2. Ad relevance: does the content of the ad match the search query?
  3. Landing page experience: what does the visitor experience after clicking?

The first two components are tracked well by most advertisers. The third, on the other hand, is structurally neglected. That is exactly where it goes wrong. The landing page experience falls outside the ad environment itself, which means it is often overlooked. Google, however, is watching. Google explains how the Quality Score is built up exactly.

In short, it comes down to this: Google rewards advertisers who link relevant ads to relevant pages. Those who do not, pay more.

Data within Google Ads campaigns shows that the difference between a low and a high Quality Score can run up considerably in CPC, depending on the competition on the keyword. That has nothing to do with your bid, but with what happens after the click.

What really happens after the click

A visitor clicks on an ad on the basis of a promise. In the seconds that follow, they assess whether that expectation is fulfilled on the page. Does the message stay invisible, or does the page look different from what was expected? Then the visitor is gone.

The behaviour after the click is registered by Google through the bounce rate, session duration and the click-through behaviour on the page. If this post-click experience falls short, it is penalised with a lower Quality Score.

What we see in the data every day are three scenarios:

  • Match: the visitor immediately recognises the ad promise on the page, feels trust and continues into the funnel.
  • Mismatch: the visitor clicks, sees no sign of the ad promise anywhere and leaves the page.
  • Partial match: the visitor stays, but does not convert because the page is not convincing enough in matching the expectation.

An example we come across regularly: an ad promises free advice. The visitor clicks, lands on a homepage where the offer cannot be found anywhere and drops off. Google registers that as a poor experience and the CPC rises immediately.

That is not a campaign problem. That is a branding problem.

How branding determines the landing page experience

Branding and ads do not work separately from each other. The combination determines what happens after the click. A strong brand identity determines the visual and substantive consistency between ad and landing page. The stronger that consistency, the better the landing page experience. This is exactly what Google measures.

Strong brand experience after the click Weak brand experience after the click
Bounce rate Low, visitor recognises the brand and stays High, visitor leaves immediately
Session duration Longer, interest is held Short, no connection and no follow-up
Quality Score Higher, Google rewards the relevance Lower, Google penalises the mismatch
CPC Lower thanks to the Quality Score Higher because of the lower Quality Score

The three elements that concretely make the difference:

  1. Visual recognisability: colours, typography and imagery in the ad must reappear on the landing page. Is this not the case? It unconsciously creates distrust.
  2. Message alignment: what you promise in the ad must be directly and clearly visible on the landing page. The visitor must see it right away, without scrolling.
  3. Professional appearance: building trust happens in the first few seconds, or not at all. A messy or outdated page costs conversions immediately.

It is not a matter of design. It is a matter of performance. A poor brand experience after the click costs money directly.

What this concretely costs you

A poor brand experience costs money directly, but how much?

Back to what we saw earlier: a lower Quality Score means a higher CPC. Paying more per click means you need more clicks for the same number of conversions. In addition, it means poorer retargeting results, because the first touch with the brand was not good enough. Those who neglect branding structurally compensate for it with higher costs.

A calculation example makes it concrete. Suppose you keep the advertising budget the same, but the brand experience improves, causing the Quality Score to rise and the CPC to fall:

Before After
Monthly budget € 3,000 € 3,000
CPC € 2.50 € 1.80
Clicks per month 1,200 1,666

That is well over a third more reach with exactly the same budget. This is an illustration and not a guarantee: the result differs per campaign and keyword.

The cumulative effect is significant. On an annual basis, an improvement of three points in the Quality Score can, with an active advertising budget, make a considerable difference in costs. This does not happen by cutting back, but by deploying the same budget more effectively.

What you can do now

A practical step-by-step plan to get started:

  1. Check your Quality Score. Open Google Ads, go to your keyword report and add the Quality Score column. Look at which keywords score below 7.
  2. Place the ad and the landing page side by side. Do the house style and the core promise match each other? Is it immediately clear to someone who does not know the brand that this is the same brand?
  3. Check whether the ad promise is immediately visible. Is what the ad promises 'above the fold' and immediately clear? If not, you lose conversions.
  4. Draw up brand guidelines. Define which colours, fonts and imagery are used. This way you prevent inconsistency, reduce the chance of drop-off and increase trust in the brand.
  5. Measure the effect. Monitor your Quality Score two to four weeks after changes. An increase of two points already has a noticeable effect on your CPC.

Extendure: from branding to measurable results

Branding lays the foundation. A strong brand experience can help to achieve better advertising results, but it is no guarantee. To actually get the maximum out of it, your performance marketing has to be in order. Targeted campaigns and a strong campaign strategy are what turn branding into measurable results.

Oase Creative builds the foundation. Extendure gets the maximum out of it. We see in the data every day where branding and ads reinforce each other.

Max Franken
Max FrankenStrategisch accountmanager bij Extendure
Knowledge Base

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