Google utilises its advertisements auction system to select where your ads show on the search results page based on Ad Rank to provide a positive user experience and provide value to advertisers.

Google also employs a second-price auction in addition to bids. The objective for this auction is to pay just $0.01 more than the next-highest bidder.

Five Ad Rank Considerations

The rule of Ad Rank is that if your ad has the highest Ad Rank, you may get the top position. The position is based on five factors:

1. Bid. Set your maximum amount per click, and Google will consider it one of many factors.
2. Ad Rank minimum threshold.  For ad acceptance, Google has a minimum ad quality standard. If you revise your poor-quality advertisement, the Ad Rank may improve.
3. The context of the search. It involves the search words, the locations of the users, the search time, the devices, other advertisements, and the users.
4. Ad extensions have an effect. The extensions of your ad include the phone number or web address. In addition to this, Google also evaluates your ad formats. Fill in more extensions as possible because they will increase your Ad Rank.
5. Auction-time advertisement quality.  You can see the quality of your ads through the quality score on your ad account.

What influences the quality of your ad?

The quality score is a mix of advertising, keywords, and landing page assessment. The quality score is shown on the right side of your account. Check the image below:

Click-through rates (CTRs). It is Google’s estimation of the ratio of clicks to ad appearances. The higher CTR, the higher quality of your keywords.

How can you improve your CTR? There are several applicable strategies. Keywords are often put in the title of your ad. If you provide special services such as free returns or a guarantee, or do you offer promotions on certain days or locations? You should include all of them in your ad.

A very relevant landing page. The URL referring to your website’s content should match precisely what is stated in the advertisement. The quality score is greater the higher the relevance. More elements are incorporated, such as the appropriateness and originality of your website content.

Relevance might be shown by the following: the landing page should be relevant to the user’s inquiry; the landing page serves as a continuation of the conversation after the ad; your website is transparent and trustworthy, and site visitors can get what they are searching for; Ensure that mobile users can easily explore your website.

Ad relevance. It contains two sorts of relevance: advertisements are relevant to consumers’ queries, and advertising is relevant to your goods or service. In addition, you should take the following actions: incorporate negative keywords, develop mobile-specific creatives, target the appropriate location, and include relevant search phrases in your ad copy.

You may spend less for a higher-quality ad, get a higher ranking on the search engine results page, and improve ad performance.

Ad rank influences advertising costs

Obviously, your maximum cost setting is the most important factor. With the setting, Google will collect a fluctuating cost per click (CPC) that will not surpass the maximum price. Google will then provide you with an average CPC to review.