What is Ad ‘Rank’?
Ad rank is a score that your keyword receives when the quality score is multiplied by the max CPC. Formula: Ad Rank = Max CPC Bid x Quality Score
- Advertiser A. Max CPC of $1.55 with a Quality score of 7 = assigned rank is 10.9 = position 1
- Advertiser B. Max CPC of $1.65 with a QS score of 4 = assigned rank of 6.6 = position 2
- Advertiser C. Max CPC of $1.30 with a QS score of 5 = assigned rank of 6.5 = position 3
What is the difference between ad rank and ad position?
Position is the actual position of your ads on the results pages. Rank is the score a keyword receives based on it’s quality score and Max CPC and this Rank is what determines your position and what you pay per click.
How do I raise my Ad Rank?
Ad rank is determined by Quality Score X Max CPC, so if you raise one of them your ad rank will improve. But just increasing Max CPC might not directly increase your ad position, as keywords should also qualify/exceed certain quality threshold set by Google. (Hence QS has the upper hand among them)
How is Actual CPC calculated?
Actual CPC is calculated by dividing Ad Rank to beat (Ad Rank of the ad showing beneath you) by Quality Score + $0.01. Formula: Actual CPC = (Ad Rank to beat ÷ Quality Score) + $0.01
- Take B’s rank of 6.6 and divide it by A’s QS of 7 – 6.6 / 7 = 0.94 cents. 0.94 is what Advertiser A has to pay + 1 cents added to place it above B’s position for a total of .95 cents.
- Take C’s rank of 6.5 and divide it by B’s QS of 4 – 6.5 / 4 = 1.62. 1.62 is what Advertiser B has to pay + 1 cents to place it above C’s position for a total of 1.63 cents
- This process repeats until the end of the auction where the last bidder pays the minimum bid required to be active in the action.
What does ‘below first page bid estimate’ mean?
Below first page bid estimate indicates that you need to increase your bid to be placed on the first page of search results. Reasons for this could be quality score of that keyword is too low or you may be in a competitive market and your bid is not meeting the minimum bid requirement to qualify for first page.
What does ‘Rarely shown due to quality score’ mean?
This message indicates that you have a problem with your Keyword Quality, Landing Page Quality Score or possibly both. Your quality score needs to be addressed immediately.
What does ‘Low Search Volume’ mean?
“Low search volume" keywords are keywords associated with very little search traffic on Google properties. Keyword can have low search volume for a various reasons, including a lack of relevance to users‘, keyword obscurity, specificity or a significant misspelling of the intended keyword.
What is Bid Optimization/Management?
Bid management is the process of optimizing paid search / sponsored search campaign by modifying the bids to get the desired rank by specifying the maximum amount you are willing to pay per click for a keyword in order to maximize return on Investment.
How is Bid Optimized?
At present most of the PPC campaigns are optimized by manual optimization or by using bid optimization tools.
Manual Optimization enables dynamic bid changes at any given point based on the performance metrics and client goals. It is more dynamic then Bid Management tools because click trends are not uniform throughout the month/day so based on current situation and real time data analysis instant action can be taken in order to maximize ROI
Bid Optimization Tools enables maximize efficiency of spend in order to reach client goals. Bid Management Tools make Keyword-level bid recommendations based on historical data for each keyword, using sophisticated statistical algorithms within parameters / strategies set for each set of group or keywords. Most of the tools available in the market work with the concept of
- Max Bid
- Min Bid
- Target ROI %
