Ad Rank in Google Ads: What Affects It & How to Improve

Google Ad Rank determines where your ads appear on the SERP and whether they appear at all. For Shopify merchants who run ads across multiple platforms, improving Ad Rank in Google Ads can be a game-changer for reaching new customers and driving sales, even with a small budget.

In this blog, we will dive deep into the intricacies of Google Ad Rank, explain how it works, what factors determine your rank, and, most importantly, how to improve it. Whether you’re running Google Ads for the first time or optimizing your existing campaigns, this guide will equip you with the knowledge you need to enhance your ad performance and achieve better results.

Overview of Ad Rank in Google Ads

Before we dive into the specifics, let’s first understand the basics. A solid grasp of how Google Ads Ad Rank works will give you the foundation you need to optimize your campaigns effectively:

What is Google Ads Ad Rank?

When you hear the term Google Ad Rank, you might already have a general idea of what it means. Yes, it’s exactly what it sounds like a set of values that Google uses to determine where your ads will appear on the customer’s search engine results page (SERP). To be more specific, here’s what Google ad rank helps Google determine:

1. Whether your ads are eligible to show.
2. Where on the page your ads will appear, competing against other ads.

When Google calculates Ad Rank, it evaluates your ad using several important factors. The higher your Ad Rank, the better your chances of securing a top spot on the search results page, which boosts both your visibility and CTR. If your ad achieves the highest rank and meets Google’s thresholds, it will land in a prime position. 

However, to consistently reach these top spots, it’s crucial to understand how Google’s system works and what specific factors influence your Ad Rank. We’ll explore these factors in detail as we move forward.

How Google Ad Rank works

Imagine a scenario where five advertisers are competing for ad placement, with Ad Ranks of 70, 40, 20, and -5. Now, let’s assume that:

• The minimum Ad Rank required to show any ads on the page is 0.
• The minimum Ad Rank to appear in the top ad location (above search results) is 30.

 In this case, only the advertisers with Ad Ranks of 70 and 40 will be able to show their ads above the search results. Meanwhile, the ad with Ad Ranks of 20 will be displayed below the results, and the advertiser with a score of -5 won’t show up at all.

This simple example illustrates how crucial it is to have a high Ad Rank to secure top placements on SERP. It also highlights the competitive nature of Google’s ad auctions, where you need to continuously optimize your ad performance to stay ahead and secure those valuable top spots.

How to check Ad Rank data in Google Ads

To keep track of your Ad Rank and ensure your ads are appearing prominently on the search results page, it’s important to rely on the Impression share metrics that Google provides. Think of these metrics as a way to monitor how well your ads are performing in terms of visibility. 

There are four key types of impression share metrics that can help you gauge whether your current ad strategy is getting your ads to the top positions:

• Impression (Abs. Top) %: This metric shows the percentage of ad impressions that appear in the very first position on the search results page, known as the absolute top spot. For example, if your ads could potentially be shown 1000 times and they appear 200 times in the top position, your Impression (Abs. Top) percentage would be 20%.
• Impression (Top) %: This metric indicates the percentage of ad impressions that appear anywhere above the organic search results, but not necessarily in the topmost spot.
• Search Abs. Top IS: This reflects the share of impressions your ad received in the absolute top position compared to all available opportunities.
• Search Top IS: This represents the share of impressions your ad received in any top position above the organic results, relative to all opportunities you had.

If you’re aiming for specific positions on the SERP, you can use the Target Impression Share bid strategy, which allows you to bid for ads to appear in either the top or absolute top positions. These metrics provide valuable insight into where your ads are being placed and can help you refine your strategies for better results.

What determines your Google ad rank?

Several factors contribute to your Ad Rank, and it’s essential to understand how each of these plays a role in determining your ad’s position on the SERP. Let’s break them down:

1. Your bid amount

Your bid is the maximum amount you’re willing to pay for a click on your ad. While you don’t always pay the full amount, your bid plays a crucial role in determining your Ad Rank. However, having the highest bid doesn’t guarantee the best position; it’s just one piece of the puzzle.

2. Ad quality score

Google assesses the quality of your ads based on several factors, including:

• Expected click-through rate (CTR): How likely your ad is to be clicked based on its relevance.
• Ad relevance: How well your ad matches the search query.
• Landing page experience: How relevant and user-friendly your landing page is.

Ad quality score is one of the most critical factors in determining your Ad Rank. Even if your bid is lower than a competitor’s, having a higher Quality Score can still place you in a better position.

3. Ad rank thresholds

Ad Rank thresholds refer to the minimum score your ad must achieve to appear in specific positions on the SERP. These thresholds can vary based on factors like the competitiveness of the keywords, the context of the search, and user behavior.

4. Competitiveness of the auction

The more competitive the ad auction, the more difficult it becomes to achieve a top position. If two advertisers have similar Ad Ranks, they’ll have an equal opportunity to win the auction. However, as the gap between Ad Ranks increases, the higher-ranking ad will be more likely to win the auction, but it may come at a higher CPC.

5. Context of the search

Google considers the context in which the ad appears, such as:

• Search terms used.
• User location.
• Device type (mobile or desktop).
• Time of the search.
• Nature of the search terms and the other ads appearing on the page.

6. Expected impact from ad assets

Google evaluates how the inclusion of ad extensions and other formats (e.g., callouts, site links, snippets) might improve the ad’s performance. Using extensions can boost your Ad Rank by providing users with more relevant information and enhancing the overall ad experience.

What is Google’s Ad Rank formula?

While the exact formula Google uses to calculate Ad Rank isn’t publicly available, we can simplify it to focus on the key factors that matter most. In general, Ad Rank is determined by two main components: your quality score and your bid amount.

A commonly used formula to understand Ad Rank is:

Ad Rank = Your bid (Maximum CPC) x Quality Score

• Bid (Maximum CPC): This is the highest amount you’re willing to pay for a click on your ad.
• Quality Score: This is a measure of how relevant and high-quality your ad is, based on factors like expected CTR, ad relevance, and the landing page experience.

For example, if your quality score is 8/10 but your bid is lower than others, you could still rank higher because of the strength of your ad’s quality. Essentially, even if you’re bidding less, a high-quality ad can give you a better position on the search results page.

Why does Ad Rank matter to your Google Ads campaign?

Having a high Ad Rank isn’t just about bragging rights—it directly impacts your ad’s visibility, CPC, and overall success. Here’s why it’s essential for e-commerce businesses:

1. Ad Positioning: Higher Ad Rank means better positioning on the SERP. Ads at the top are more likely to be seen and clicked, leading to increased visibility and a higher CTR.
2. Cost Control: A higher Ad Rank can lead to a lower CPC. Google rewards high-quality ads with better placement at a lower cost, allowing you to stretch your ad budget further.
3. Increased Conversions: The more visible your ads, the more likely they are to convert. Higher Ad Rank = more clicks = more opportunities for sales.

How to Improve your Ad Rank in Google Ads

Improving your Ad Rank involves a combination of optimizing your bid strategy, enhancing ad quality, and focusing on relevance. Here are some actionable steps to take:

1. Increase your ad relevance

Make sure your ads are closely related to the keywords you’re bidding on. This ensures higher relevance, a better Quality Score, and a higher Ad Rank. 

2. Use ad extensions

Ad extensions are additional pieces of information that make your ads more engaging. Adding sitelinks, callouts, and snippets can boost your ad’s performance and increase your Ad Rank. Remember also to consider image extensions, which can improve CTR by giving your ad more real estate on the SERP.

3. Optimize your quality score

To boost your Ad Rank, it’s essential to focus on improving your ad quality score, which is influenced by three key factors: ad relevance, click-through rate (CTR), and landing page experience. 

Start by ensuring that your landing pages are fast, mobile-friendly, and closely aligned with your ads. Additionally, make sure your ad copy accurately matches your targeted keywords and the search queries your audience is using. Offering valuable content, paired with a clear and easy-to-follow conversion path, will create a seamless user experience. This not only improves your quality score but also significantly enhances the overall effectiveness of your campaign.

4. Optimize your bidding strategy

If your current bidding strategy isn’t delivering the results you’re aiming for, it might be time to make some adjustments. As we’ve mentioned earlier, and as reflected in the Ad Rank formula, your bidding plays a crucial role in determining your ad’s placement. 

If your ad quality is strong and you’re competitive with other advertisers, that’s a great start. However, to improve your position on the SERP, you may need to increase your CPC bid. If your ads are performing well in terms of quality score, but you’re still not seeing them at the top of search results, raising your bid can make a big difference.

On the other hand, if your primary goal is to drive more traffic and impressions to your website, you might want to shift to a Target Impression Share bid strategy. This approach focuses on securing your ad’s position on the SERP, helping you achieve better visibility and reach your traffic goals.

5. Focus on device and location targeting

Customize your ads to align with your audience’s devices and locations. If you know most of your target audience uses mobile, focus on optimizing your ads specifically for mobile searches. Likewise, using location targeting allows you to reach a more relevant audience, which can improve your Ad Rank by delivering more personalized, effective ads to the right people at the right time.

6. Enhance keyword relevance

Ensure your ads are built around the most relevant keywords by focusing on the search intent behind them. Understand what your audience is looking for, and tailor your ad copy to match those specific needs. 

This not only boosts the relevance of your ads but also improves your Quality Score. A tip for you: Regularly review and refine your keyword list to align with changing search trends and user behavior. This helps keep your ads highly relevant and competitive.

Ready to boost your Google Ads performance?

Now that you have a solid understanding of Google Ad Rank, it’s time to optimize your campaign and get your ads to the top of the page, where you can better reach your customers. But don’t focus solely on impressions—take a deeper look at how different ad placements are impacting your sales. This will give you a clearer picture of how your ads are contributing to your overall revenue, which is crucial for any e-commerce store aiming to maximize the return on every dollar spent on advertising.

Setting up Google Ads conversion tracking is essential to understanding how your ads drive sales. To get a more well-rounded view of your performance, consider incorporating third-party analytics tools. This approach gives you broader insights across all your marketing channels, rather than relying solely on Google’s platform.

We also recommend exploring NestAds, a tool we appreciate for its advanced tracking features that go beyond the basics. One standout feature is customer journey tracking, which gives you valuable insights into the typical paths your customers take before making a purchase. This helps you fine-tune important touchpoints along the way. Additionally, NestAds’ centralized data reports make it easy to spot your top-performing channels, helping you allocate your budget more effectively and invest in the platforms that generate the best results.

FAQs

Does Google still use Ad Rank?

Yes, Ad Rank is still the primary system Google uses to determine ad placement on search results pages.

How do I increase my Ad Rank on Google Ads?

Improve your ad relevance, use extensions, optimize your landing pages, and bid strategically to increase your Ad Rank.

What does low Ad Rank mean?

Low Ad Rank means your ad is unlikely to appear in the top positions or might not show at all. It also indicates that your ad’s relevance, Quality Score, or bid might need