Quality Score and Ad Rank in Google Ads

Ever wondered how Google decides which "sponsored" ads appear at the very top of your search results? It's not just about who pays the most. This article explains how Google Ads chooses which ads get your attention and potentially lead to a conversion.

Sponsored Ad

We have all used Google's search function, and we have all seen that at the top of the search results, there is "sponsored" next to the texts and products that appear directly below the search bar. But how does it actually work? How does Google, one of the world's largest search engines, decide which ad should be displayed at the very top to catch my eye?

Google Ads is Google's own advertising platform. Google's primary goal is to attract and retain users and be the world's leading search engine. That's where you as an advertiser come in. By using Google advertising effectively, you create a win-win situation: you reach your target audience at the right moment, and Google benefits from continuing to provide relevant search results and a useful "advertising ecosystem." However, Google as a search engine also places demands on us as advertisers that we must follow in order to find a benefit in paying for advertising.

By building a strong relationship with Google and a win-win situation, we as advertisers must ensure that the keyword we buy, the ad we write, and the landing page we want to direct the advertiser to are as good as possible. This is where Quality Score and Ad Rank come in.

What is Quality Score?

To manage and have control over advertisers' ads, Google uses a 1-10 rating system called Quality Score. Google uses this to assess the quality and relevance of your ads and keywords. This, in turn, affects both your ad position and CPC (Cost Per Click). Google checks the following:

  • Ad Relevance: How closely your keyword matches the message in your ads. A below-average rating may indicate that your ads are too general or specific to answer the user's query, or that this keyword is not relevant to your business. Example: You don't want someone searching for dog food to see ads promoting horse feed.

  • Landing Page Experience: How relevant and useful your landing page is for people who click on your ad. It takes into account factors such as how well the content on your landing page matches someone's search term and how easy it is for people to navigate the page. You don't want someone searching for dog food to end up on a landing page about horse feed.

  • Expected CTR: How likely someone is to click on your ad when it is shown. This value is based on your ads' historical click-through rate, as Google looks at historical data. Google excludes the effects of ad position and other factors that affect ad visibility, such as sitelinks and so on, and only looks at this.

What is Ad Rank?

Ad Rank determines your position. Ad Rank is the result of the rating you received in Quality Score multiplied by what you are willing to pay.

Ad Rank formula explained

So, how does it actually work?

Below, we have mapped it out to make it easier to understand:

  • High bid + high quality = Super high ad rank: You are first in line, everyone sees your ad first.

  • High bid + low quality = Medium high ad rank: You may still appear, but not at the top. Your ads are expensive but not very appealing.

  • Low bid + high quality = Medium high ad rank: You may not be willing to pay much, but your ads are so good that people click on them.

  • Low bid + low quality = Low ad rank: You are at the back of the line, and no one notices your ads.

This is what it can look like:

Advertiser 1: 50 SEK (bid) x 6 (Quality Score) = 30

Advertiser 2: 30 SEK (bid) x 7 (Quality Score) = 21

Advertiser 3: 70 SEK (bid) x 9 (Quality Score) = 63

Summary: By putting in money, you don't automatically get a high position or valuable leads. It requires careful planning and execution to create the best possible ad, keywords, and landing page. Focus on quality over quantity – it will benefit you in terms of time but also your wallet!

Are you interested in knowing more? Contact us below!

Jenny Mossinger

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