The value of an advertisement given by a website is determined by something called as the Google Ad Rank. So if you want Google to feature your ad, this algorithm is what determines the rank of your ad on search results page. It shows you the position of your ad, where it can be put as compared to other ads and whether it is eligible to be featured at all.
Google Ad Rank works on a simple algorithm. Your ad rank is a numerical value which is determined by the amount of money you invest for the ad, the quality score of your ad and your ad extensions.
What is a quality score? So quality score is nothing but a value determined by the amount of traffic you get on your website, the quality of your content and the popularity of your website in general.
This score is generally given to you on a scale of 1 to 10 and is an aggregated value of your overall performance as a website. Chances of you getting a better ad rank are higher if you have a good quality score. Also higher your quality score, lower you need to pay for the ad and vice-versa.
Ad Extensions are nothing but phrases or information given after the advertisement. For eg., you usually see the location of the store even along with your ad or contact number or various other small extensions like store ratings and other web page links. These extensions are also very important.
Now to understand this algorithm better, let us take a very common example of PREFECT. When the voting poll is carried out for the position of school PREFECT, 3 things are considered: your academic achievements along with your extra-curricular activities, your relation with the teachers of the school and your popularity among the school children i.e. your friends.
If you excel in all these 3 fields, the chances of you getting maximum votes for the PREFECT position are higher. It is similar to the process of Google Ad Rank. Your academic and extra-curricular achievements are like the amount you invest in your advertisements i.e. the bid. Your relation with teachers in school is like the quality score of your website. And finally your friends are like the ad extensions that enhance the value of your ad.
So if you excel in all these 3 aspects, chances of you getting a better position on Google Ad Rank are higher. So if we had to put this in a mathematical equation, Google Ad Rank = Bidding Amount * Quality Score * Ad Extensions.
Isn’t this process so cool? How interesting will it be the next time you search for something on Google and you see an ad, you will know exactly why it is here, how it there and what went behind it.
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