Google Ads Algorithm 2023: How Google Decides Ads Ranking?
Table of Contents
- How Google Ads Algorithm Works?
- How Does Google Decide Which Ad to Show?
- Understanding Ad Rank with Example
How Google Ads Algorithm Works?
Like the organic listings in SERP, Google wants to offer the best experience with ads as well. Google Ads algorithm takes a number of things into consideration for placing ads in SERP. The deciding factors are:
Ads with the maximum bids and quality score find the top slot. If two websites have the same bid and quality score, then Google analyzes which website will offer a better experience to customers.
How Does Google Decide Which Ad to Show?
Google Ads uses this formula to decide the ranking of ads in SERP:
Max Bid x Quality Score = Ad Rank
For every keyword, there is an auction where businesses or website owners bid to get their ads published. Websites that pay the highest bid for certain keywords are placed on the top position in ads, also considering the quality score of the ad.
If the ad with a maximum bid has a low quality score, it may see a decline in ranking. Based on Ad Rank, Google then decides the position.
Understanding Ad Rank with Example
The example below will help you understand the Google Ads algorithm and Ad Rank quickly:
We are trying to run an ad campaign on Google Search with this keyword- flats for sale in delhi. Our quality score is 6, and the bidding starts from $20. To get a position on the first page, the maximum bidding in the auction reaches $45.
Our Ad Rank will be calculated like this:
Bid x QS = Ad Rank
45 x 6 = 270
If no competitor has their Ad Rank above 270, our ad will be placed on the top. If any competitor with a quality score of 6 wants to gain the first rank, they will have to bid more than $45.