Question

Explain two factors that affect the ranks of search ads and why these factors are important for search engines (i.e., why do search engines consider these factors in determining the ranks of search ads?)

Answer 1

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Answer:

In early 2017, AdWords announced a few key changes to the way that Ad Rank functions. One of the big ones was the introduction of ad rank thresholds and machine learning

Essentially, your bid amount, ad quality, and ad rank threshold get passed into Google’s system. There, the specific keyword search is analyzed to determine exactly what that user is most likely looking for based on previous and common behavior.

This means that every single search is fundamentally different, triggering different ad rank factors to carry more weight.

So in some cases, bidding higher might the only way you can rank higher.

But that’s not always the case.

According to Google, these are the key factors at play when evaluating your ad rank:

• Bid amount/ad rank thresholds: The minimum amount you need to bid to be in a specific position. For example, you can’t bid 10 cents and rank first for a term that costs $2. Ad rank thresholds on specific keywords mean that, depending on the context of the search, your bid amount might be the determining factor and more important than the factors below.
• Ad quality: CTR, relevance, landing page experience. Essentially, your quality score.
• The context of search: Device, time of day, terms, etc.
• Ad extension impact: Were they relevant, and did they produce increases in CTR at or above the norm?

Because Google AdWords is an auction where you bid on keywords and pay for search terms, it’s often assumed that simply bidding higher is what lands the top spot.