What is Google Ad Rank
Ad Rank
Ad Rank is calculated using your bid amount, the components of Quality Score (expected clickthrough rate, ad relevance, and landing page experience), and the expected impact of extensions and other ad formats.
How ad position is determined
Ad position is determined by your Ad Rank in the auction. Your Ad Rank is a score that's based on your bid, the components of Quality Score
(expected clickthrough rate, ad relevance, and landing page experience), and the expected impact of extensions and other ad formats. If you're using the cost-per-click bidding option, your bid is how much you're willing to pay for a single click on your ad. The quality components of Ad Rank are a measurement of the quality of your ad text and landing page in the context of what a user is searching for.
Note that if you're using extensions
To improve your ad position, you can increase your bid, or you can focus on improving the quality of your ads. See the "Next steps" section at the bottom of this article for more information about how to optimize your ad position by improving your ad quality.
New AdWords Ad Ranking Formula =
How Are Google Ads Ranked On A SERP?
AdRank determines the order in which competing ads should be ranked on a SERP, which (obviously) has a huge impact on the visibility of your ads to potential customers. Here’s the basic concept:
The preceding figure illustrates how competing ads on Google are ranked in descending order of Ad Rank. The advertiser that has the highest product of maximum CPC bid and Quality Score wins the coveted top ad spot.
How Does AdRank Impact Cost-Per-Click?
A less known (and more confusing) fact about AdRank is that it plays a huge role in determining the actual cost-per-click that your competitors pay when someone clicks on their ads, as you can see by the following figure:
Note that the cost-per-click you get charged by Google when someone clicks on your ad (which is not the same thing as your maximum CPC bid — which is the most you are willing to pay, but not necessarily what you are actually charged) has everything to do with what other people were willing to pay for the click and their Quality Score, divided by your Quality Score, plus 1 cent.
Confusing huh? Let’s go through a quick sample ad auction example here:
In this example, four advertisers are competing for the same keyword. Notice if someone were to click on advertiser 1’s ad, he would pay just $1.61 which is equal to the Ad Rank he must beat (which is Advertiser 2’s Ad Rank of 16) divided by his own Quality Score (which is 10), plus 1 penny.
The key takeaway here is that AdRank helps determines both your ad position and the cost-per-click of your nearest competitor. For that reason, I consider it to be among in holy grail of SEM metrics, right up there with other super important PPC metrics like Quality Score
What’s Changed With AdRank?
Last week, Google announced big changes to the way AdRank is calculated. Unfortunately, In typical Google fashion, the announcement is rather short and vague on details — so here’s my detailed, line-by-line analysis of the official announcement that was posted on official the AdWords Blog (complete with my snarky comments inline).
What is Quality Score
Quality Score
Quality Score is a variable used by Google, Yahoo! (called QualityIndex), and Bing that can influence both the rank and cost per click (CPC) of ads. To determine the order in which ads are listed, each ad has the following formula run against it: bid * Quality Score.
Everyone is familiar with the Quality Score available for individual keywords in your Google AdWords account – this is the visible keyword-level Quality Score. What a lot of people fail to recognize, is that there is more at play here than meets the eye. Most of the time, you can’t solve a Quality Score issue with just the keyword level QS available to you in the AdWords interface. There is more to investigate, and can require a bit of digging on your part to solve the overall issue. This guide will help you understand the different types of Google Quality Score, why they’re important, the misconceptions about Quality Score, and it will provide you with a checklist of actions you can take to help raise your Quality Score.
Types of Quality Score
(a) Account-Level Quality Score
(b) Ad Group Quality Score
(c) Keyword-Level Quality Score
(d) Ad-Level Quality Score
(e) Landing Page Quality Score
(f) Display Network Quality Score
(g) Mobile Quality Score
An Introduction to Google Merchant Center
Google Merchant Center
Google Merchant Center is a tool which helps you to upload your product listings for use with Google Shopping, Google Product Ads, and Google Commerce Search.
So, if someone searches for a product on Google Shopping: http://www.google.co.uk/shopping, items listed here, will have been uploaded to Google Merchant Center.
Please note that in order to advertise your products on Google Shopping, you will need to book Product Listing Ads with Google. This a paid for service powered by Google Adwords where you will pay per click when advertising your products on Google Shopping.
Getting Started
In order to use Google Merchant Center you must first sign up for an account with Google. If you already have an account with Google (like Gmail), visit google.com/merchants and sign in to get started.
If you do not already have a Google account, visit google.com/merchants and click "Create an account now". You will be prompted to enter a sign in email and password, as well as the following information, to create a Google Merchant Center account.
Min CPC, Max CPC and Avg CPC Clarified
Max CPC and Avg CPC clarified
Minimum CPC - also referred to as Min CPC or Minimum CPC bid:
As discussed in our previous post, a minimum cost-per-click (CPC) bid is assigned to each keyword in your account based on its quality (as measured by its Quality Score). The minimum bid is typically the least amount you can pay per click in order for your keyword to show ads. It is important to note that minimum CPC is set by the AdWords system, and not by the advertiser.
Maximum CPC - also referred to as Max CPC:
Maximum cost-per-click (CPC) is set by you, the advertiser, and is the highest amount that you are willing to pay for a click on your ad. You can set a maximum CPC at the keyword or ad group level. If you're interested in a deeper look at Max CPC.
Average CPC - also referred to as Avg. CPC:
This is literally the average amount you pay each time someone clicks your ad. The Avg. CPC you see in your account is determined by totalling the cost of all clicks and dividing that total by the number of clicks.
For example:
if your ad receives three clicks, one costing $0.33, one costing $0.38, and the third costing $0.49, then your average CPC for those clicks is $1.20 divided by 3 clicks, or $0.40.
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