Google Ads Ad Rank Explained - Ad Rank Formula, Thresholds, & How to Improve

Learn more about Google Ads Ad Rank and Ad Position. We cover the Google Ads Ad Rank Formula, Ad Rank Thresholds, how to improve your Ad Rank, and how to see your ad rank on Google Ads. When it comes to Google AdWords Ad Rank and Quality Score, there are a lot of different factors to consider. Ultimately, you might be asking a question like: How do I get my Google Ad to the top of search results? How do I get the top Ad Position? Ultimately, it comes down to Ad Rank. There are a variety of factors that contribute to Ad Rank, so I will do my best to explain all of them in the video.

How is ad rank used?

Ad Rank is used by Google Ads to determine your Ad Position in the search results. Higher Ad Ranks will mean higher Ad Positions vs. Competitors.

How is ad Rank Calculated?

Google Ads looks at the following Ad Rank Factors:
1. Your bid amount
2. Ad quality, relevance, and extensions
3. Expected click-through rate
4. Landing Page experience
5. Context of the person's search

What is the ad rank formula?

Google Ads does not give away the exact formula. It is based on the combination of factors above so that Google can return the most useful, relevant, and targeted advertisements. If I had to guess, Google places a value on average bids, ad quality, landing page quality, and historical click-through rate to come up with ad rank.

A sample formula would look something like the one below, however, this is NOT the actual Google AdWords Ad Rank Formula:

Ad Score + Landing Page Score + CTR Score + Bid = Ad Rank

What is Ad rank Threshold?

"The reserve price for your ad. If your bid is lower than the threshold, your ad won’t show. And if none of your competitors are eligible to show, the threshold (reserve price) is the price you pay for the click."

If your bid is not high enough, your ad will not show. Overall Ad quality plays a factor as well.

Your Ad Rank Impacts CPC:

Higher auction time quality scores lead to lower costs for your campaign. If you can maximize your ad quality, landing page experience, and create organized campaigns that lead to a high CTR, you will pay less per click than other advertisers for higher ad positions.

Your Actual CPC is based on your Ad Rank and Competition.

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