Getting listed on Google has become a necessity for all organisations hoping to run a successful e-commerce business or maintain a powerful online presence. Since it is not always possible to get good organic rankings through SEO, other techniques become necessary. One of them is the usage of Google AdWords.

AdWords is an excellent advertising platform which can help in enhancing a company’s presence on Google. While AdWords is a paid platform, it is often worth the investment made. Therefore, it is important to get a thorough understanding of how this platform works.


What is AdWords?

AdWords is an advertising platform run by Google. It is meant for businesses that want to display their ads on Google as well as its extensive advertising network. In this platform, companies can set specific budgets for their advertising requirements and pay only when their ads are clicked. It has become essential for successful internet marketing.
Using AdWords, businesses can create ads that are based on and relevant to specific keywords. People searching for those keywords will be served the ads alongside the organic listings for the same. The ads will appear on top of the organic Google search results listed under ‘Sponsored Links’.


What is Ad Rank?

One of the most important elements of Google AdWords is the Ad Rank. In simple terms, it is a value which is used for determining the position of your ads. In other words, it will affect where your ads are going to be shown on a web page or if it will actually be shown at all.

How Are Ads Ranked?

Screenshot from Google Fundamentals Video

If you want to utilise AdWords to the fullest, you need to understand how the Ad Rank is calculated. This way, you can work towards getting a better rank for your ads.
One of the major elements that affect the Ad Rank is the bids placed. The quality of the ads as well as your site will also determine your Ad Rank. There are several other factors which are considered by Google when calculating the rankings. The relevancy of the ads on the search intention of the customer will be checked along with the click-through rates.

For the CTRs, the historical performance of your ad on impressions and clicks will be considered. The quality and experience provided by your landing page will also be a factor. A landing page that is relevant and offers easy navigation will earn higher points for the overall Ad Rank.

As a result, it is quite possible to get a higher position with your ad at lower prices even if the competition placed higher bids. All you need to do is used ads and keywords that are highly relevant.

It is important to understand that the Ad Rank is not fixed. It will be recalculated each time the ad becomes eligible for appearing in an auction. In other words, the position of your ad can change depending on the competition for it at each instance.

Keeping the above factors in mind is essential when you are using Google AdWords for your internet marketing activities. Improving on them will certainly benefit you in the long run.