Yet Another Google Algorithm Update, This time It’s AdWords Ad Rank

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Yet Another Google Algorithm Update, This time It’s AdWords Ad Rank

Adwords Algorithm Update
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Google has made the biggest change in the PPC Industry on 22nd of October by changing the way display ads will show alongside search results, one that will result in bigger ads and a lot of links above the fold. In the past, Google’s Ad Rank consisted of two factors a) Keyword’s Quality Score and b) an ad’s position was dictated by a combination of two factors, the keyword’s Quality Score and its max CPC bid. 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. The change will also penalize advertisers who aren’t using ad extensions — which is why the change is expected to result in a lot more advertisers using them, and a lot more users seeing them.

Don’t just take our word for it, below are some implications of these changes released by
Google on Improving Ad Rank earlier this week:

  • Ad extensions and formats can now influence the position of your ad on the search results page. 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.
  • When estimating the expected impact of extensions and ad formats, we consider such factors as the relevance, clickthrough rates, and the prominence of the extensions or formats on the search results page.
  • Because Ad Rank is now more important in determining whether your ad is shown with extensions and formats, you might need to increase your Quality Score, bid, or both for extensions and formats to appear.
  • In each auction, we’ll generally show your highest performing and most useful combination of extensions and formats among those eligible. So there’s no need to try to guess which extensions will help improve your clickthrough rate the most.
  • You may see lower or higher average CPCs in your account. You may see lower CPCs if your extensions and formats are highly relevant, and we expect a large positive performance impact relative to other competitors in the auction. In other cases, you may see higher CPCs because of an improvement in ad position or increased competition from other ads with a high expected impact from formats. 

Google also reminds advertisers the ad platform will automatically choose which ad extensions should be used, based on best CTR performance. Ad Rank will currently only affect advertisements placed on the Google search results page. If you’re seeing an inflated CPC or drop in ad rank due to these changes it’s time to consider revamping your Adwords account to ensure you are on top of your game with Enhances Campaigns and Adwords Extensions for your business.

Recommendations for using extensions by Google

Extensions make your ads more useful and can improve your campaign performance. So you should add extensions that make sense for your business type and campaign goals. With these improvements to AdRank, our systems will do even more to automatically serve extensions in the contexts when they’re most beneficial.

For example, consider someone downtown searching on a mobile phone for “auto repair.” In this example, the user might be most likely to respond to your ad when they can click to call a phone number or tap a link to get directions to visit in person. So we may show a combination of call and location extensions with your mobile search ad. Now imagine if someone were searching for “auto repair” on a laptop computer in the suburbs. Say your ad earned the 3rd ad position above the organic results in this auction. We might show your seller rating and sitelinks because that’s the highest performing and most useful combination of extensions that could be shown with your ad in this particular auction and ad position.

If all this is too much for you to consume, it’s time to call up an expert.  Visit our Pay Per Click Services page to find the help you need.

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Salman Aslam
Salman Aslam
Salman Aslam is the Founder & CEO of Omnicore, a leading Healthcare Digital Advertising & Marketing Agency helping clients across the globe. You can follow him on Twitter for tweets and rants about latest news, tips and advice on digital marketing.