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PPC Advertisement and Google's New Ad-rank Ad Algorithm

PPC Marketing | Admin | Updated: 2014-02-18

PPC Advertisement and Google's New Ad-rank Ad Algorithm

One of the many great things about the Internet is that every publisher, be it small or large can easily generate revenues from any webpage or blog. With PPC, you don't need a marketing expert, a webmaster or an expert advertiser. All you need is to explore various PPC Advertising methods and sign for the one that best suits your website.

Google and PPC Advertisement

Amongst the largest PPC Advertiser, Google offers an extremely practical testing ground for Pay Per Click management. The Google PPC advertisement system is known as Adwords, which is a platform that a number of advertisers and marketers use as a source to get traffic to their websites. People, who are curious about a certain niche, click on these advertisements to know more about merchandise. Google Adword uses the keywords that consumer type in the search field in order to bring in the results.

Understanding the New Google Ad Rank

Ad Rank is equivalent to the patented algorithm that Google uses to rank sites on a search engine. The difference between Ad Rank and the algorithm is that, Ad Rank determines where the PPC adds would appear in the sponsored result and that how much the advertiser would pay when someone clicks on the Ad.
Previously ad rank was simply the maximum Cost Per Click Bid (or, the most one is willing to pay per click) multiplied by the Quality Score. Thus, in order to improve ranking, either of the two were necessary:

  • Raising Keyword Bids
  • Improving Quality Score

New Algorithm Change :

The new Google Ad Rank algorithm uses three components instead of two: In addition to CPC Bid and Quality Score, now the Ad rank incorporates the expected impact from the ad extension and format. Thus, if you use the most basic, default ad format, you may not be able to find the top spot, even if your Quality Score or Bid are higher.

How does this affect you?

In order to understand the effects of the new algorithm change on publishing and advertising, we would first need to learn a bit about ad extension. Ad Extension is an option in Adwords that allow the user to expand an advertisement with additional information and link back to the website.

Google understands that small and medium sized businesses tend to have limited time, budget and PPC expertise, therefore the new change in the algorithm is to encourage advertisers to use ad extension to advance PPC performance.
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