{"id":5541,"date":"2023-12-16T06:05:21","date_gmt":"2023-12-16T01:05:21","guid":{"rendered":"https:\/\/www.ppcexpo.com\/blog\/?p=5541"},"modified":"2023-12-22T12:55:46","modified_gmt":"2023-12-22T07:55:46","slug":"ad-rank-and-ad-position","status":"publish","type":"post","link":"https:\/\/ppcexpo.com\/blog\/ad-rank-and-ad-position","title":{"rendered":"The Benefits of Ad Rank and Ad Position &#8211; Ad Rank Formula"},"content":{"rendered":"<p>In paid advertising, there are plenty of terms to keep novice marketers on their toes, but not all of them are as important to your business as the two we will explore in this article.<\/p>\n<p><em>Ad Rank <\/em>and <em>Ad Position <\/em>are interlinked values that can confuse many people. When you take the time to understand the difference between Ad Rank and Ad Position you will comprehend the link between them.<\/p>\n<div style=\"text-align: center;\"><img decoding=\"async\" class=\"alignnone size-full wp-image-4345\" style=\"max-width: 80%;\" src=\"https:\/\/www.ppcexpo.com\/blog\/wp-content\/uploads\/2019\/05\/ad-rank-and-ad-position.png\" alt=\"ad rank and ad position\"><\/div>\n<p>Better yet, you\u2019ll be in a better position to make smart decisions about how to grow your business through <a href=\"https:\/\/ppcexpo.com\/ppc\" target=\"_blank\" rel=\"noopener noreferrer\">paid advertising<\/a>.<\/p>\n<p>Sound good?<\/p>\n<p>Let\u2019s discover more.<\/p>\n<h2>What is Ad Rank?<\/h2>\n<p><em>Ad Rank <\/em>is used to determine the ad position, which is where an ad is displayed on Google\u2019s search engine results pages (SERP) relative to the competitors\u2019 ads.<\/p>\n<div style=\"text-align: center;\"><a href=\"https:\/\/ppcexpo.com\/ppc-audit\/free-ppc-audit\" target=\"_blank\" rel=\"noopener noreferrer\"><img decoding=\"async\" class=\"alignnone size-full wp-image-4345 ppc_audit_top_ads\" style=\"max-width: 100%;\" src=\"https:\/\/ppcexpo.com\/blog\/wp-content\/uploads\/2021\/12\/ppcaduitaccount-3.png\" alt=\" ppc audit report bottom\"><\/a><\/div>\n<p>To calculate it, Google considers a number of factors, including:<\/p>\n<ul>\n<li>bid amount<\/li>\n<li>ad quality score at the time of auction<\/li>\n<li>the context of the person\u2019s search (e.g. the user\u2019s location, device, time of search etc.)<\/li>\n<li>expected impact of extensions<\/li>\n<\/ul>\n<p>Here is the formula to help you calculate your Ad Rank:<\/p>\n<p style=\"text-align: center;\"><strong><em>Ad Rank = MAX CPC Bid x Quality Score x Expected Impact of Extensions<\/em><\/strong><\/p>\n<h2>The Benefits of a Good Ad Rank<\/h2>\n<p>Having a good ranking is definitely a good sign. Here are just a few things that your good Ad rank is telling you:<\/p>\n<h3>Better Ad Ranking means a Perfect Ad<\/h3>\n<p>Whenever a user search triggers your ad, it will compete in an auction, and then <a href=\"https:\/\/ppcexpo.com\/blog\/google-ads\" target=\"_blank\" rel=\"noopener noreferrer\">Google Ads<\/a> calculates the rank. This process considers auction-time factors such as <em>ad relevance <\/em>and <em><a href=\"https:\/\/ppcexpo.com\/blog\/expected-click-through-rate-vs-click-through-rate\" target=\"_blank\" rel=\"noopener noreferrer\">expected click-through rate<\/a>. <\/em>If your ad gets a better ranking, it is fulfilling more requirements for the top positions.<\/p>\n<h3>Good Ad Ranking indicates High Quality Score and Lower CPCs<\/h3>\n<p>A high <em>quality score <\/em>is indicative of a highly-relevant ad that is meeting the needs of users. Google will reward such ads with a lower <em>cost-per-click (CPC) <\/em>value. Therefore, by maintaining a high ranking position, you can keep your costs to a minimum.<\/p>\n<h2>What if Your Ad Ranking is Low?<\/h2>\n<p>If you have a low ad ranking, there is no need to panic \u2014 you can fix it in a number of ways:<\/p>\n<ul>\n<li>Try using different landing pages for each ad.<\/li>\n<li>Highlight the benefits of your product rather than features to target customer pain points.<\/li>\n<li>Focus on more defined keyword groups for each ad.<\/li>\n<\/ul>\n<p>Each of these techniques can help you refine your ads so that they are more targeted and more relevant for smaller subsects of your wider audience. This should improve your CTR.<\/p>\n<p>As a last resort, you can also increase your keyword bids to improve ad rank. To discover more about improving your ad rank and optimizing for conversions, check out our blog on <a href=\"https:\/\/ppcexpo.com\/blog\/conversion-rate-optimization-best-practices\">Conversion Rate Optimization best practices<\/a>.<\/p>\n<h2>What is Ad Position?<\/h2>\n<p><em>Ad Position <\/em>relates to your ad\u2019s placement in SERP. This is the list of results a search engine will return in response to specific search terms.<\/p>\n<p>Within SERP, there are two types of search result:<\/p>\n<h3>1. Organic Searches<\/h3>\n<p>These are the natural listings that search engines return, which are determined by a series of relevant metrics and solid search engine optimization (SEO) practices.<\/p>\n<h3>2. Sponsored Searches<\/h3>\n<p>In Google\u2019s SERP, there are up to 8 sponsored search positions.<\/p>\n<ul>\n<li>A maximum of 4 sponsored ads may be displayed <em>above <\/em>the organic search results. These are the <em>\u2018Top<\/em>\u2019 positions.<\/li>\n<li>A maximum of 4 may be displayed <em>below <\/em>the organic results. These are called <em>\u2018Other\u2019. <\/em><\/li>\n<\/ul>\n<p>The Ad rank will influence which position sponsored ads appear. For example, an ad position of \u20181\u2019 will hold the first position in the top area of SERP.<\/p>\n<h2>The Benefits of a Good Ad Position<\/h2>\n<p>For anyone in paid advertising, seeing your ads in a higher position in search results is a good feeling. But there\u2019s more to be gained than a dose of pride.<\/p>\n<h3>Higher Ad Position Can Improve ROI<\/h3>\n<p>When your ads show up on top, there is more chance of getting clicked on. By working on your quality score, you can maintain a <a href=\"https:\/\/ppcexpo.com\/blog\/google-ad-positioning\">good ad position<\/a>, which ultimately helps to increase your return on investment (ROI).<\/p>\n<h3>Higher Ad Position Saves You Money<\/h3>\n<p>As the ad position is determined by ad rank, so your ad must meet specific <em>ad rank thresholds <\/em>in order to be displayed in SERP. Because of this, it\u2019s possible to earn a higher spot even when you\u2019ve been outbid by competitors.<\/p>\n<h2>What if Your Ad is not getting a Top Position?<\/h2>\n<p>The competition for the top spot can get expensive, which will damage your ROI if you don\u2019t have a smart strategy for growth. Increasing your bids can help move you up, but that\u2019s not a good long-term plan. Ideally, you should be focusing on improving your quality score.<\/p>\n<p>Another point worth knowing is that the <a href=\"https:\/\/www.ppcexpo.com\/blog\/the-most-significant-google-ads-average-position-myths\" target=\"_blank\" rel=\"noopener noreferrer\">#1 average position is not always best<\/a>.<\/p>\n<div style=\"text-align: center;\"><img decoding=\"async\" class=\"alignnone size-full wp-image-4345 ppc_signal_bottom_ads\" src=\" https:\/\/ppcexpo.com\/blog\/wp-content\/uploads\/2021\/12\/ppc-signal-ad-2.png \"><\/div>\n<h2>Consider the Benefits of Ad Rank and Ad Position to Maximize Your ROI<\/h2>\n<p>Google uses the ad rank formula to determine how your ad compares to competitors\u2019 ads. This, in turn, is a factor in your <em>ad position<\/em> in the search engine results pages.<\/p>\n<p>People who are new to paid advertising may simply try to muscle their way into better positions by throwing money at their campaigns. However, when you realize what the benefits of a good ad rank and ad position are, you\u2019ll discover a smarter method.<\/p>\n<p>There are many factors that Google considers, but the one you should focus on is the <em>quality score<\/em>. By improving that, your ads will become more engaging, and more relevant to your viewers. After that, click-through rate (CTR) will increase, and your cost-per-click (CPC) will fall.<\/p>\n<p>By taking this approach, you can get a better ad rank, and subsequently benefit from a higher ad position. Best of all, you\u2019ll be doing it for less money, which is great for your overall ROI.<\/p>\n<p>Learn more about <a href=\"https:\/\/ppcexpo.com\/blog\/what-is-a-good-quality-score\" target=\"_blank\" rel=\"noopener noreferrer\">improving your quality score<\/a> now to change the fortune of your campaigns today.<\/p>\n","protected":false},"excerpt":{"rendered":"<p><p>Ad rank and ad position are two key metrics in paid advertising. By understanding how they correlate, you can improve your ads.<\/p>\n&nbsp;&nbsp;<a href=\"https:\/\/ppcexpo.com\/blog\/ad-rank-and-ad-position\"><\/a><\/p>","protected":false},"author":1,"featured_media":5543,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[785],"tags":[276],"_links":{"self":[{"href":"https:\/\/ppcexpo.com\/blog\/wp-json\/wp\/v2\/posts\/5541"}],"collection":[{"href":"https:\/\/ppcexpo.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/ppcexpo.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/ppcexpo.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/ppcexpo.com\/blog\/wp-json\/wp\/v2\/comments?post=5541"}],"version-history":[{"count":0,"href":"https:\/\/ppcexpo.com\/blog\/wp-json\/wp\/v2\/posts\/5541\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/ppcexpo.com\/blog\/wp-json\/wp\/v2\/media\/5543"}],"wp:attachment":[{"href":"https:\/\/ppcexpo.com\/blog\/wp-json\/wp\/v2\/media?parent=5541"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/ppcexpo.com\/blog\/wp-json\/wp\/v2\/categories?post=5541"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/ppcexpo.com\/blog\/wp-json\/wp\/v2\/tags?post=5541"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}