Thursday 31 October 2013

Performance Tip: Google Makes Big Changes to Ad Rank

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What the New AdWords Ad Rank Algorithm Really Means

October 31, 2013 - The PPC world is abuzz with last week’s announcement that AdWords is introducing a new component to its Ad Rank formula. In the past, an ad’s position was dictated by a combination of two factors, the keyword’s Quality Score and its max CPC bid.

AdWords Ad Rank Algorithm

Google has now thrown Ad Extensions into the mix to serve as a tie-breaker of sorts. As Google describes it, “if two competing ads have the same bid and quality, then the ad with the more positive expected impact from extensions will generally appear in a higher position than the other.” This is, by far, the biggest change to Google’s ad rank algorithm since AdWords’ inception over a decade ago. So let's take a look at what it means.

For all intents and purposes, the old ad rank formula seemed to be working just fine. So why did Google rock the boat and incorporate yet another factor for advertisers to worry about? I have a few theories...

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