Google’s Ad Rank program is designed to display the most relevant ad content to its users and to provide an equal system that benefits both the user and the advertiser. This Ad Rank system is controlled by the advertisers ad quality. The ad quality is determined by the websites click through rate (CTR) and ad relevancy to landing page content and keywords used.
Ad Rank works so that users gain satisfaction through seeing more relevant ads to their keyword and advertisers get to show more relevant ads for their product or service. The end result is that Google maintains satisfied customers through creating a good experience for both the user and the advertiser (Varian, 2009).
Ad Rank is used to “determine where (and if) your ads appear and how much you pay for clicks (Danuloff, 2009).” Ad Rank is created of a math formula that decides which ads appear within the top positions of Google’s Adwords. The formula used to create this Ad Ranklisting is:
Ad Rank = Max Cost Per Click (CPC) x Quality Score.
Company XYZ’s (XYZ) current quality score for the keyword “Dallas Web Design” is 3. In order to find the Ad Rank position, XYZ can calculate the MaxCPC ($4) by the Quality Score (3), and the result equals 12.
If XYZ raises its quality score to at least a 7, it could easily lower its CPC to $2 and end with a rank of 14. With a higher quality score, XYZ can pay half the cost and rank higher than with its lower quality score of 3 and budget of $4.
In order to raise its Ad Rank position, XYZ should focus on raising its quality score by first raising its CTR, increasing keyword relevancy to users search query’s and by creating an optimized landing page that holds original relevant content and performs high on users operating systems.
The higher the quality score, the lower the CPC. Ultimately, the Google quality score system allows for the prevention of advertisers to pay their way to the top of the search results within Google’s search engine. With this system, the higher quality score will save the advertiser money, create better placement and increase company revenue.
Danuloff, C. (2009). Is the hype over google adwords quality score justified? Retrieved May 4, 2010, from http://searchengineland.com/is-the-hype-over-google-adwords-quality–score-justified-
Varian, H. (2009, March 11). Introduction to the google as auction [Video file]. Retrieved May 4, 2010, from http://www.youtube.com/watch?v=K7l0a2PVhPQ&feature=channel
Dr. Elijah Clark (February 20, 2015). Google’s Ad Rank program & Quality Score [Web log post]. Retrieved from http://elijahclark.com/googles-ad-rank-program-quality-score/