Google Ad Rank: Ways to Rank Higher Without Spending More

Some Google Ads users who are running search ads assume the ubiquitous bid-based PPC structure is relatively straightforward. Doesn’t the highest bidder get the top spot on the search engine results page (SERP), and the next-highest bidder slides in right below them?

That would be elegant. But that’s not even close to how ad ranking in Google Ads works.

The key to generating more cost-efficient paid search conversions is not always increasing budget – it’s understanding how all of Google Ads’ ranking factors influence the price and placement of each bid in the auction that runs every time a user sees an ad.

What Is Ad Rank in Google Ads?

Ad ranking refers to a formula to determine a search ad’s position on the SERP. A winning an ad rank of 1 means your ad is at the very top of the page. Winning position 1 results in about 2.1% of all clicks compared to roughly 1.4% for the second paid position. Most search engines use a proprietary ad rank formula, but most mimic elements of the Google ad rank formula to serve high-quality and relevant results to users.

Related: The Ultimate PPC Glossary

Ad Rank vs. Ad Position

These two terms are often used interchangeably, but there is a subtle difference.

• Ad rank is the hidden proprietary formula that determines the order in which ads appear on the SERP.
• Ad position is the “spot” an ad is placed on the SERP.

The Google Ads Rank Formula

First introduced in 2005, the formula combines a few factors to determine which ad is served in the top position, and it doesn’t all come down to the highest bidder.

Ostensibly, the formula is:

Bid x Quality Score = Ad Rank

In reality, the formula is more complicated. The bid price is set by the advertiser and varies based on the specific keyword, auction competitiveness, user signals, and overall paid bid strategy at play. The quality score is a complex factor, too, so there’s a full section below explaining it.

How to Improve Ad Rank in Google Ads

The formula’s two components highlight the two directions advertising can take to improve rank:

• Pay more. Advertisers with deep pockets can increase their maximum bids to win rank for valuable keywords. But if the campaign isn’t fully optimized, this can be wasteful. 
• Improve quality score. Instead of simply splashing cash, invest time and resources in improving click-through rate, keyword relevancy, and landing page experience. Keep reading for ideas!

What Is Quality Score?

Google Ads’ rank quality score is a metric that measures how relevant your ad and campaign materials are to the user. This is where things get granular. Your score is determined by a few factors, including:

• The relevancy of the keywords
• Click-through rate, or how many users click on your ads
• Landing page experience as measured by average page load speed, mobile friendliness and content relevancy

Google doesn’t provide specifics about these factors. We don’t know how much weight click-through rate carries compared to landing page experience, for example, and there are likely additional factors that Google uses to calculate ad rank that it doesn’t release publicly – there might be a trend here.

Google uses these three quality score factors (and whatever else they do behind the curtain) to assign an aggregated numeric score between 1-10. A quality score of 1 indicates low-quality results, while a score of 10 is perfect.

Here’s an example of how quality score impacts ad ranking by the numbers.

Examples of Google Ad Rank in Action

This is a great representation of how quality score impacts rank and how much money advertisers can save by focusing on improving ad rank on their most important campaigns. Here, your quality score of 9 and $1.50 max bid puts you in position #2. In this scenario, you’re spending 62% less than Company #4 and showing up right below them in the SERP; for most companies with small budgets, that’s a win!

How to Improve Quality Score in Google Ads

Improving your quality score boils down to addressing below-average click-through rate, keyword relevancy and landing page experience.

• CTR optimization – Test, test, and test. Create multiple ad copy variations, and see which ads perform the best. Try restructuring sentences, using new verbs, and introducing strong calls-to-action (CTAs) to see what language resonates with your audience. Google and third-party tools now automatically generate copy variations to improve results!
• Keyword relevancy optimization – Focus your bids on keywords that are highly relevant to your product or service. You can use negative keywords to reduce disambiguation and tailor your ads to the right audience.
• Landing page optimization – Effective landing pages improve your conversion rate, keep users on-site longer, and ultimately improve your quality score. Great landing pages combine stunning design, a seamless page experience, and a clear CTA.

Oneupweb’s paid media team invests considerable time in evaluating and improving our clients’ quality scores to improve campaign efficiency and meet their goals. Even if you’ve been running campaigns for years, don’t underestimate the value of a paid media audit or management support.

Quality Always Counts at Oneupweb

In Google Ads, quality counts for a lot. Oneupweb knows that effective marketing is about reaching the right audience at the right time and doing it as efficiently as possible. See how a customer-focused team with more than twenty-five years of experience can sharpen your digital marketing. Get in touch or call (231) 922-9977 today to start the conversation!