What is the Importance of Google Ad Rank?
Learn more about Ad Rank and the role it plays in your Google Ads campaigns.
If you are a Google Ads advertiser, you should be optimizing for Ad Rank. Google uses a value called Ad Rank to determine if an ad is eligible to be shown in Google search results. If your ad doesn’t meet minimum Ad Rank requirements, it won’t be shown. Your Ad Rank can also determine what you pay per ad click. Learn about the main factors Google uses to determine Ad Rank of an ad and how those factors should be considered in your ad strategy.
How does Google Ads Auction work?
Every time a person searches something on Google, Google Ads runs an instant auction that considers all the ads associated with relevant keywords. The auction determines which ads are eligible to be shown, the ad position compared to competitors, and the CPC that the advertiser will pay if someone clicks on the ad. During the ads auction, Ad Rank is calculated by considering advertiser max CPC bid, ad quality score, Ad Rank thresholds, search context, and ad extensions and formats used.
What is Google Ad Rank?
If you earn the top ad rank compared to all the other advertisers bidding on similar keywords to yours, you will show at the top position of Google search results for the search queries you are bidding on. If your ads do not meet Ad Rank eligibility, they won’t be shown in search results and won’t receive clicks.
Ad rank is calculated by multiplying the Max CPC bid and your Quality Score and adding them to additional factors like ad extensions and formats, Ad Rank thresholds, search context, and competitiveness of an auction. You can’t simply spend more to get the best Ad Rank, but setting higher CPC bids does help.
Why should advertisers care about Ad Rank?
There are minimum Ad Rank thresholds that, if not met, can keep an advertiser’s ad from being shown. Ad Rank also determines where in search results you will appear. There is a significant difference in terms of performance depending on where you fall in search results. The top ad positions get around 50% extra traffic than just one position lower.
Ad Rank also impacts your CPC, or cost per ad click. The actual CPC you pay, versus what you bid, is determined by your Quality Score and Ad Rank, plus $0.01. The formula for Actual CPC = (Ad Rank of the advertiser below you/Your Quality score) + $0.01. It literally pays to improve Ad Rank. You can reduce what you spend on Google Ads overall if you improve your Ad Rank and Quality Scores.
Your Quality Score is determined by three main factors:
Expected CTR: CTR is the number of clicks your ad receives divided by the number of times your ad is shown. CTR stands for Click Through Rate. It measures how relevant users feel your ad is to their search query.
Landing page experience: the landing page experience measures how useful and relevant your landing page was to the person who clicked on your ad. Your landing page is the website URL you use in your ad.
Ad Relevance: Ad Relevance measures if your ad matches the search intent of the query. It helps Google to only show ads that are useful.
You can increase your Quality Scores by improving your landing page, ad copy, and ensure you are only bidding on relevant keywords. If your landing page doesn’t match the intent behind a search query, chances are you will receive a low Quality Score. There may be better keywords to bid on. You can improve your landing page experience by providing more information and answering actual user’s questions.
Your Google Ad Rank is important. If you don’t meet minimum Ad Rank thresholds your ad won’t show. If your Ad Rank and Quality Score are low, you will pay more per click and pay more overall on your Google Ads campaigns. As an affiliate marketer, it can be hard to meet ROI and successfully promote offers if you do not optimize your paid search campaigns. If you have a low Quality Score, you should improve your landing page and ad copy to make each more relevant to the keywords you are bidding on.
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