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# Thread: What is Ad rank?

1. Senior Member
Join Date
Jan 2018
Posts
154
The position of this ad depends on the position of each keyword included in the ad, which is determined by your bid for that keyword or ad group multiplied by the matched keyword's Quality Score.

2. Member
Join Date
Oct 2018
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41
Ad Rank means position of Ad in google or top social media.

3. Junior Member
Join Date
Dec 2018
Location
Pune
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21

## Ad Rank

Ad Rank is the underlying concept which decides which Ad will show on which position.

Ad Rank = Your CPC bid * (Quality Score[80% weight] + Ad Extensions[20% weight])

CPC is cost per click you are willing to pay
Quality score is measure automatically based on your Keyword CTR, Ad relevance & Landing Page Quality
Ad extensions are now required to be used in all Ads
Now suppose there are 3 advertisers A,B and C

A’s CPC = \$2 , Quality Score = 10

B’s CPC = \$3 , Quality Score = 6

C’s CPC = \$4 , Quality Score = 4

Respective AD Ranks

A = 20
B = 18
C = 16
So, Ad rank says A’s Ad should be on top followed by others. Sorted! But, there is another part to the story.

A does not pay \$2 instead each time a keyword search is made by the user on Google a fresh Ad auction is run which is a variation of second price Auction and this is how the actual CPC prices are calculated

A’s CPC = (B’s Ad Rank / A’s Quality Score) + \$0.1

or

A’s CPC = (18/10) + \$0.1 = \$1.81

similarly B’s CPC = (16/6)+\$0.1 = \$2.76

C’s CPC will follow next advertiser’s Ad rank

4. Member
Join Date
Oct 2018
Posts
41
Ad rank determines where your ad will appear on Google Search Results Page.

5. Senior Member
Join Date
Dec 2018
Posts
121
Ad Rank determines your ad position -- where your ad shows on the page in relation to other ads -- and whether your ads are eligible to show at all.

6. Junior Member
Join Date
Dec 2018
Location
Pune
Posts
21

## Ad Rank

Ad Rank is the underlying concept which decides which Ad will show on which position.

Ad Rank = Your CPC bid * (Quality Score[80% weight] + Ad Extensions[20% weight])

CPC is cost per click you are willing to pay
Quality score is measure automatically based on your Keyword CTR, Ad relevance & Landing Page Quality
Ad extensions are now required to be used in all Ads
Now suppose there are 3 advertisers A,B and C

A’s CPC = \$2 , Quality Score = 10

B’s CPC = \$3 , Quality Score = 6

C’s CPC = \$4 , Quality Score = 4

Respective AD Ranks

A = 20
B = 18
C = 16
So, Ad rank says A’s Ad should be on top followed by others. Sorted! But, there is another part to the story.

A does not pay \$2 instead each time a keyword search is made by the user on Google a fresh Ad auction is run which is a variation of second price Auction and this is how the actual CPC prices are calculated

A’s CPC = (B’s Ad Rank / A’s Quality Score) + \$0.1

or

A’s CPC = (18/10) + \$0.1 = \$1.81

similarly B’s CPC = (16/6)+\$0.1 = \$2.76

C’s CPC will follow next advertiser’s Ad rank

7. Junior Member
Join Date
Jan 2019
Posts
23
Ad rank refers to the position that your ad occupies on a given paid search results page.

If your ad shows up second, your ad rank for that given search is number two.

Ad rank is a value that determines your ad position and if your ad will show up at all for a search.

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