67. What is Google Ad rank?
Ad rank determines where your ad will appear on Google Search Results Page, i.e., top, bottom in relation to other ads and whether your ads are eligible to show at all.
Ad Rank assigns the position of your ad considering two main components- Quality score and maximum bid. Quality score results from a mysterious algorithm known to Google alone roping in a few known factors like expected clickthrough rate, ad relevance, landing page experience and so on while bid refers to the price an advertiser must pay to the publisher, in this case being Google, who in exchange rents you the ad space-top, bottom or side of the page.
Hence, the formula to calculate an Ad Rank is:
Max Bid * Quality Score= Ad Rank.
Thus, your bids, quality of your ads and website influence your Ad Rank. The position of ad determined by the Ad rank is subject to fluctuation depending upon the competition at the moment. Ad rank is recalculated each time your ad is eligible to appear. It will fluctuate in response to the competition, bid, user’s search query and its relevance to your landing page.
To improve your ad position, you can increase your bid, or you can focus on improving the quality of your ads. Needless to say, latter is cost-efficient and bears long lasting results. Since, even if your competition is a higher bid, you can still win a higher ad position at a lower price by upping the quality score using highly relevant keywords, ads and extensions.