Whether we are talking about websites or advertisements, achieving a higher position on the search engine results page (SERP) is a key goal for both SEO and PPC campaigns. A higher ranking generally leads to a higher click-through rate (CTR), which increases visibility and the potential for new leads.
When it comes to Google Ads rankings, the search engine evaluates several factors to determine where your ads appear. Ultimately, much of this decision depends on the quality and relevance of your ad.
Google Ads auction and how it works
Every time a user performs a search, Google runs an instant process called the Google Ads auction. During this process, eligible ads are ranked and displayed based on several factors.
#1 Cost per click (CPC)
This represents how much you are willing to pay for a click on your ad. However, a higher bid does not automatically guarantee a higher ranking.
#2 Quality score
Quality Score estimates how relevant your ads, keywords, and landing pages are to users. A higher score indicates that Google considers your ad useful and relevant, which can improve your ranking.
#3 Ad extensions
Ad extensions provide additional information about your business, such as phone numbers, location details, or links to specific pages. These elements help increase the usefulness of your ad.
#4 Ad rank
Ad Rank determines the position of your ad on the search results page and whether your ad is eligible to appear at all.
#5 Context
Google also evaluates contextual factors such as the user’s location, the time of the search, and the keywords used in the query.
The formula behind Google Ads ranking
Achieving a higher Ad Rank requires attention to several variables.
Previously, the main formula used to determine Ad Rank was:
Ad Rank = Maximum CPC × Quality Score
However, after several updates, Google now also considers additional elements such as:
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Ad extensions and formats
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Search context
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Auction competitiveness
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Ad Rank thresholds
Although it might seem that spending more will guarantee better results, this is not always true.
For example:
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Advertiser A bids $5 with a Quality Score of 4
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Advertiser B bids $3 with a Quality Score of 8
Advertiser B would likely achieve a higher position because their Ad Rank would be 24, compared to 20 for Advertiser A.
Google also uses a second-price auction model. This means the winning advertiser usually pays slightly more than the Ad Rank of the next highest competitor divided by their Quality Score, plus $0.01.
Best practices for achieving a higher Ad Rank
Finding the perfect combination of CPC and Quality Score can be challenging because Google evaluates many factors. However, the platform clearly prioritizes quality and relevance, which strongly influence both Ad Rank and overall campaign performance.
Instead of simply increasing bids, optimizing your ads can significantly improve your visibility on the results page.
Below are a few important areas to focus on.
1. Ad relevance and effective ad extensions
Ad relevance is a major component of Quality Score. The more closely your ad matches the user’s search intent, the more relevant Google considers it.
Your ad copy should include keywords that users are likely to search for. This increases the chances that your ad will match the query and appear in relevant results.
Ad extensions also play an important role. They provide additional context that helps users quickly understand your offer.
Common extensions include:
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Location extensions
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Sitelinks
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Call extensions
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Ratings or reviews
These additions make your ads more informative and can improve your ranking.
2. Landing page experience
Once users click on your ad, the landing page experience becomes crucial.
A landing page should deliver exactly what the ad promised. If the content is confusing or unrelated to the ad, users may leave quickly, which can negatively affect performance.
To provide a strong landing page experience, make sure your page:
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Is easy to navigate
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Works well on both desktop and mobile devices
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Loads quickly
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Includes relevant keywords related to the ad
Although PPC campaigns involve paid placements, combining SEO principles with PPC can improve campaign performance and contribute to a higher Ad Rank.
3. Separate ad groups for each service
Each ad group should focus on a single product or service using highly relevant keywords.
This structure allows your ads to match user search intent more accurately and improves both relevance and Quality Score.
Google Ads also offers different keyword match types, which help refine how closely a search query must match your keywords.
Common match types include:
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Broad match
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Phrase match
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Exact match
Using these strategically allows you to deliver more targeted ads to users who are actively searching for your services.
Quality is essential in a PPC campaign
As you can see, the Google Ads ranking system involves much more than simply placing the highest bid. Achieving strong results often depends more on quality and relevance than on budget alone.
The good news is that improving the quality of your ads and landing pages can significantly increase your Ad Rank without requiring higher bids.
If you need help optimizing your PPC campaigns or improving your Google Ads strategy, our senior PPC consultants are ready to assist you.
