What is an Ad Rank
Ad Rank is a basic formula that AdWords uses to order ads on a search engine results page. Ads with higher Ad Rank show in higher positions, and ads with lower Ad Rank show in lower positions. Google has not made public the exact formula for Ad Rank; however, the basic ingredients are well known. Before we define Ad Rank further, first we need to understand the important role Ad Rank plays in the AdWords ecosystem.
How does it work
Paid search advertising in Google AdWords is the main system and advertisers put the budget in order to make their ad appear in search engine result page Google then uses an auction system to rank ads on its search result page.To do this, Ad Rank incorporates factors about quality, in addition, to bid amount, that helps to determine ad position on a search result page.
the highest bidder would always occupy the top advertising spot, the second highest bidder would occupy the second position, and so on. However, that’s not always the case.
Let us assume that Advertiser in position one willing to pay 15$. and advertiser in position two willing to pay 14$ and advertiser in position three willing to pay 12$
the ads might be ordered differently, in a non-linear order. For instance, the advertiser in a position one might be willing to pay $12 a click; the advertiser in position two might be willing to pay 10$, andd the advertiser in position three might be willing to pay $8. Now let’s analyze the factors of Ad Rank to see why the ads would end up in this order.
Factors of Ad Rank
Ad Rank mainly depends on three factors they are…..
It is the maximum amount an advertiser is willing to pay for a click for a given keyword.
Quality score is an automated 1 to 10 score that Google assigns to the experience a user will have with an ad and a landing page for a given keyword. There are a variety of things that impact quality score, including ad relevance, landing page experience, and expected click-through rate
is the additional format features, such as ad extensions, which make an impact on click-through rate.
Ad Rank Formulae
Ad rank = Maximum bid + quality score + ad relevancy
However, google gives much importance to quality score and ad relevancy. When you try to create an ad check your quality score and how your landing page is related to ad text and then look to changing your max bid. This approach will help to minimize costs while you move toward achieving your goals.