Ad rank is a metric used in online advertising, particularly in pay-per-click (PPC) advertising such as Google Ads, to determine the position of an ad on a search engine results page (SERP). Ad rank is calculated using a combination of factors, including the bid amount, the quality of the ad, and the expected impact of ad extensions and other ad formats.
The exact formula for ad rank varies depending on the advertising platform, but generally includes factors such as:
Bid amount: This is the amount an advertiser is willing to pay for a click on their ad.
Quality score: This is a score assigned to the ad based on factors such as relevance, landing page quality, and historical performance.
Expected impact from ad extensions and other ad formats: This includes factors such as the expected click-through rate (CTR) from extensions like sitelinks or callouts, as well as other ad formats like shopping ads or video ads.
The ad with the highest ad rank will typically be displayed at the top of the SERP, while lower-ranked ads will be displayed lower down on the page. Advertisers can improve their ad rank by increasing their bid amount, improving the quality of their ad and landing page, and optimizing their use of ad extensions and other ad formats.