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New Changes to AdWords Ad Rank Calculations

google adwords ad rank calculations croud australia

Croud’s PPC Account Manager, Vikki, takes a look at the changes that have been made and the implications that they will have on advertisers.

On the 22nd of October, Google announced that they had made changes to the way in which they calculate AdWords Ad Rank algorithm.

In a move to encourage the use of a number of their new features, particularly ad extensions Google have moved to include the use of new extensions and formats in the calculation of Ad Rank.

To help us better understand this change let’s firstly take a look at what Ad Rank is – a value used by Google to determine the position your ad appears on the landscape. Previously, Ad Rank was calculated by taking into account your Quality Score and your maximum bid. Now it will also take into account your use of Google Ad Extensions and formats, with your usage now playing a role in the price that you will have to pay and also the position you appear in.

So why have Google made these changes? From Google’s point of view, this will ensure that all advertisers are making use of all of the relevant features available to them which in turn will ensure that customers have the best possible experience when completing a search.

Ad Extensions and Formats – Call Extensions, Location Extensions and Seller Ratings to name just a few – all provide customers with additional information related to their search, whether it be directions to the company, contact details or additional trust through customer reviews – they make your ads more powerful.

Alongside the change encouraging you to use Ad Extensions and Formats, Google has also announced that they have increased the importance of Ad Rank in determining whether your ads will be shown with extensions and formats. Google will automatically decide on the most useful combination of extensions and formats to use within each auction, and will serve those they perceive the most beneficial – and it’s this perceived uplift which now feeds into Ad Rank.

Croud Australia digital marketingThe use of Google’s features has suddenly become increasingly important – now is the perfect time to ensure you are using all of the relevant extensions and formats available to you to ensure the impact of the algorithm change is as beneficial as possible to yourself.

 

If you need any help setting up ad extensions or deciding on which are the most relevant for your company Croud can always help. Get in touch here.