Ad Rank in AdWords is very crucial and helps in making out how prominent the ads are showed and affect the cost-per-click. Therefore, whenever Google changes your Ad Rank one should pay due attention.
What is Ad Rank?
Google keeps changing the protocols related to Ad Rank. Unfortunately, as usual, the announcement of Google is not easy to comprehend and incomplete on details. Google says the “Ad Rank Improvements in order to ascertain and organizing the search results, the pages rely on a calculation called Ad Rank”.
Earlier, It was ascertained using a CPC bid and the Quality Score. The Ad Rank will consider the third component for understanding the impact of the ad extensions and formats.
Google also Communicated this in Official AdWords Blog:
“There are many specifics and inferences of the so-called changes. The Ad extensions and formats are also able to decide your fate on Click-Through Rates. And, the distinction of the extension lead or formats on the search outcomes page.”
The AdWords Blog Official:
“Ad Rank helps in determining whether the ad is displayed with extensions and formats, for this the increase in Quality Score, bid, or both for extensions and formats to appear.”
The Adwords Official Communication:
“In each and every auction, generally depict the maximum performing and most beneficial combination of extensions and formats with eligible persons.
Official AdWords Blog:
“There may be lower or higher average CPCs. The Lower CPCs are caused by extensions and formats, the large positive performance influence relative to other competitors in the auction”.
How Does Ad Rank affect CPC or Cost-Per-Click?
It has enormous influence on the reflectiveness of the ads to the potential and prospective customers.
Here’s the basic concept: Ad Rank in AdWords has always been calculated depending on Max CPC and the Quality Score.
A more confusing fact about Ad Rank:
It plays a huge role in determining the actual CPC that your competitors pay when someone clicks on their ads.
Google charges Cost-per-click or CPC whenever someone clicks on your ad. What are you going to be charged is based on how much people are willing to pay per click and also the Quality Score, then divided by your Quality Score, +1 cent.