Google uses Ad Rank for arranging competition ads on the SERPs. Google has recently made several major updates to the AdWords program. Until recently, the search giant was taking Quality Score and max CPC bid into account for calculating Ad Rank, but now ad formats and extensions also play an important role in your ad’ position. The importance of Ad Rank has increased significantly in determining if your ad can be displayed with formats and extensions.
Ad position is crucial to PPC marketing. Google AdWords uses a complicated auction system for selling its ad inventory. Ad Rank is the formula behind your ad’s position on Google sponsored links. The traditional formula for Ad Rank is as following:
CPC bid – It is the maximum bid that you can pay for a specific keyword.
Quality Score – It is the grade given to your ad and depends on its Click-through Rate or CTR on Google. Other factors taken into account include:
- Relevance of keyword to the search term
- Relevance of ad to the search term
- Past performance of your account
Usually, higher ad positions help achieve higher CTR.
CTR– Click-through Rate is the number of clicks per number of impressions received by your ad.
In addition to these factors, Google can award higher ad positions to those who can pay more per click. If you want to achieve better Ad Rank without spending much, you will have to figure ways to improve your AdWords Quality Score.
Effect of Ad Text on Keyword Position
If you want to improve you’re the quality score of your ads, keep the following tips in mind:
- If you can improve relevance, you can improve your Ad Position
- If you can improve the CTR, it can help improve the quality score
Relevance can also help improve the CTR
Use Ad Extensions
Google also recommends the use of ad extension for improving the visibility of ads. In its official statement, Google states that if two ads have the same quality score and CPC bid, the ad having better effect from extensions usually appears higher. So the use of ad extensions can help in improving the CTR of your ads.
Research shows that 7 out of 10 mobile searchers contact a business through search results. Some of the important extensions are:
- Location extensions
- Review extensions
- Offer extensions
Social annotations like displaying your number of Google-Plus followers are effective social indicators. It can be helpful because Google also takes social signals into account in its organic search rankings.