The main principles of ad auction in Adwords

As you know, Google Adwords uses ad auction, in order to sort down all of the advertisement links, belonging to the advertisers. This allows showing all of the sponsored links to a person, who searches anything in Google. As you can imagine, anyone who purchases Google ads, wants his link to be listed on the top of the SERP. It is obviously the premium place that provides the highest volume of traffic. So, how can you get to the top of the SERP with your ads?

Well, the obvious answer is: you should pay more than your competitors. The one, who sets the highest price, gets all the traffic. It looks simple and fair. But another problem arises. If Google Adwords used the price as the only criteria to sort the sponsored links, the end users would saw not so relevant and sometimes – even low-quality ads. Google can’t let it happen, so it uses another criterion in its ad auction – the quality of the ads, its relevance. Such parameter, as a ‘Quality score’ is used for this.

The name of this parameter speaks for itself: it indicated the quality of the ads, which is analyzed. How relevant it is, how good its landing is, etc. These factors influence the results of the ad auction, which is held by Adwords. As a result, not only the most expensive ads is shown, but also the one with the highest quality. It’s the core principle of Adwords: it filters the sponsored links due to several parameters, combining them together.

Why is your Ad rank so important?

Ad rank is one of the tools that allow Google Adwords to rank your ads in the search results. It determines the position your ads takes in the list. There is a bunch of factors that influence Ad rank. In this article, we would like to look through some of them.

The first thing that should be mentioned is: your Ad rank influences the position your advertisement has. The higher your rank is, the better position you take. As a result, the top position is the best one, because it brings you the majority of traffic. However, taking the first position in SERP isn’t that easy. You should mind all of the things that influence your Ad rank.

Your maximum bid is one of them. Each advertiser, launching the campaign, sets the maximum bid that is appropriate for him. The more you are ready to pay – the higher position your ads takes. So, raising the maximum bid allows you to get more visitors.

The quality of your ads matters too. It is indicated by the Quality score of your ads, another metric that shows how good your ads is. It depends on your headline and description; your URL relevancy, your landing page, etc. Making them more relevant increases your chances to have a higher Quality score. As a result, your Ad rank increases as well.

Google Adwords Ad rank is quite important for your campaign. It allows you to get more cost-effective traffic, which has a higher conversion rate for the lower price. Besides, Ad rank indicates, how high your ads is positioned.