What Is Google Ads Ranking And How Google Ads Auction Work?

What Is Google Ads Ranking And How Google Ads Auction Work?

What Is Google Ads Ranking - How Google Ads Auction Work


In this digital world, everyone wants to see their ads or website on the Google search engine page. But no one wants to understand the algorithm behind how Google display ads on the Search engine page and how google decides ads ranking on SERP. In this article, we would explain to you all the algorithms behind google ads called Google Auction.

Google ad Auction

What is Google Ads Auction?


Google ads use an auction system to rank the ads that appear on the search result page and to determine the cost of each ad click. The order in which ads appear on the page is based on a calculation we called Ad Rank.

Think matters for Ad Rank


Ad Rank is the combination of your Bid, Ad Quality, and Ad Rank threshold.

Bid: Bid is nothing but an amount which are you ready to pay per click.

Ad Rank Threshold: For high-quality ads, we set minimum quality thresholds that an ad must achieve to show in a particular ad position.

For Ad rank threshold we looked at search terms, locations, type of devices, the time of the search, and other ads these things matter a lot to Rank your Ad on SERP.

Quality Score: Quality score is an estimate of the quality of your ads, keywords, and landing page.

The higher the quality of the ad - The lower the price & better position on SERP.

To improve Ad quality focus on this three-component:

1) Expected click-through rate (CTC):
  • Be specific in your ads.
  • Experiment with different calls to action.
  • Highlight the unique benefits of your products.
  • Create Time and Location (Specific ad Text)
2) Ad Relevance:
  • Add Negative Keywords.
  • Be specific on Mobile (Test mobile-specific creatives)
  • Be local
  • Include relevant search terms in your ads.
3) Landing Page Experience:
  • Send traffic to the right Landing Page.
  • Be Consistent,
  • Make your site transparent and trustworthy.
  • Work on landing page speed and clarity.
  • Rethink Mobile: Ease of navigation is valued by user even more on mobile websites, So make sure your website is optimized.

How Google ads Auction Work?

  1. When someone searches, the Google Ads system finds all ads whose keywords match that search.
  2. From those ads, the system ignores any that aren't eligible, like ads that target a different country or are disapproved based on a policy violation.
  3. Of the remaining ads, only those with a sufficiently high Ad Rank may show. Ad Rank is a combination of your bid, ad quality, the Ad Rank thresholds, the context of the person's search, and the expected impact of extensions and other ad formats.
For Example: 

Google Ad Ranking


Here, Advertisers 1, 2, 3, and 4 are from the same industry and want to run ads on Google.

Advertiser 1 has set a bid of 2 dollars and his quality of ad/ Landing page is 10 then the final Ad rank score is 20 which is highest. And Advertiser 4 has set a bid of 8 dollars but his quality score is just 1 then the final score is 8 which is the lowest.

Here we have understood that if your ad quality and landing page quality is good and relevant then chances of getting good scores are higher. And in the example advertiser spend very less amount on bid still because of his ad quality score his Ad rank is higher compare to other competitors. And Google ads will display his ad on the 1st position on the SERP ads portion.

So the conclusion of the article is for Google ads to analyze all possible aspects that help you to minimize your bid amount.



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