Ad Rank and Quality Score

What Is Ad Rank?

According to Wordstream, "Ad ranking in Internet marketing is the position of a pay-per-click (PPC) ad on a search engine results page (SERP)." In layman's terms, ad rank is how high up your ad will appear on any given search.

What Determines Ad Rank? 

The new algorithm that determines ad rank is now your bid for that keyword or ad group multiplied by the matched keyword's Quality Score. "Higher ad ranking typically results in greater exposure for your products or services as a result of experiencing higher click-through-rate on your ads."

How Does The New Ad Rank Formula Change The Current Environment?

Ad rank has now become all that more competitive as ad extensions drive down CPC, making ad extensions no longer optimal. Moreover, CPC bids are making ads more competitive, hurting especially small businesses without the resources to spend more money per click than bigger corporations.

Links:

New AdWords Ad Ranking Formula: What Does It Mean?