According to Google’s Official AdWords blog, the end of October 2013 comes with certain significant changes to AdWords Ad Rank calculation.
“Our system for ordering ads on search results pages uses a calculation called Ad Rank. Previously, Ad Rank was calculated using your max CPC bid and your Quality Score. With this updates, Ad Rank will also take into account a third component: the expected impact from your ad extensions and formats. In addition, we’ve increased the importance of Ad Rank in determining whether your ad is eligible to be displayed with extensions and formats.”
Here’s what this update actually means:
- Ad extensions and formats are now eligible to influence the actual position of an AdWords ad on search results pages.
- Should two competing ads bid the same amount and also be assigned the same quality score, then this third factor comes in to differentiate: the ad bearing ad extensions which are expected to result in more positive outcomes will generally be shown on a better position than the competing ad.
- The estimation of expected impact of ad extensions and formats is done taking into considerations factors such as relevance, CTR rates and the like.
- Bids and quality scores being so important in determining the actual display of ad extensions and formats, it might become increasingly necessary to work on improving or raising either one or even both.
- Average CPC levels can vary (increase or decrease) according to the relevance and quality of ad extensions.
- The update is currently only applicable to search ads display on Google Search.
Search Engine Journal provides some key tips for dealing with the AdWords Ad Rank update. Find out some of the things you can do here.