Google AdWords Algorithm For AdRank Computation

One of the major search engines that offer pay per click program is Google. Google offers Google AdWords for online advertisers and web promoters. Google AdWords lets web marketers advertise on Google. The ads will appear on Google search results for different search terms. The ads placement on Google results depend on Google’s unique pay per click algorithm.

Google’s algorithm has awed many web marketers and online advertisers. Most of the pay per click search engines today use a very simple algorithm in pay per click ads. The higher your bid is, the higher your ads position will be. But Google is not one of those pay per click search engines that use this simple algorithm.

Google AdWords Uses A Ranking Method Called AdRank

The Google AdWords ranking algorithm is not all about high bids. Google AdWords uses a ranking method called AdRank. So how does this AdRank works? Each of the ads you place on Google AdWords has an assigned AdRank for each keyword it runs under.

How does Google determine the AdRank of each ad? The formula is ad’s maximum bid multiplied by the click through rate or CTR that each ad gets. To illustrate the AdRank computation, please see below formula:

The New Google AdRank Computation

Recently Google has added other factors in ranking the ads on Google AdWords. Now, they put priority on the quality score. What is quality score? Quality score of an ad refers to the ads performance history on Google. By performance, Google AdWords pertains to the click through rate or CTR, relevance of ad text, keyword performance history and the quality of the landing page among many other factors. So the formula can be illustrated as follows:

What are the other factors included in the computation of the AdRank you may ask. Well, Google is secretive enough not to divulge them to anyone. At least, now we know some of the factors that affect the AdRanks of our ads, right? Web marketers and online advertisers can focus on their ads’ quality score to get better positioning in Google AdWords.

Conclusion

Whatever algorithm Google AdWords use, as long as your ads are effective and optimized, there is nothing to worry about. The best thing that web marketers and online advertisers must focus on is to create ads for their target market and not for Google. After all, the ads are meant to get more site traffic and higher conversion rate; not to impress Google or the other pay per click search engines.

Google AdWords uses algorithm to compute the AdRank of each ad. Aiming for a better position for your ads? Please contact our Pay Per Click Experts now or grab the Free PPC Analysis offered today!