So, you ask, how is Ad Rank determined? While bid price (the price advertisers are willing to pay for each click per thousand impressions) is obviously an important factor, we also calculate advertiser Quality Score to make sure the best performing ads will always appear on your site. Quality Score takes into account factors such as an ad's relevancy and click-through rate (CTR) (i.e. how likely users are to click on a given ad) because a higher CTR sometimes outweighs the benefits of a higher bid price. This ensures that your site always displays the ads representing the highest revenue potential for you.
You might also wonder: "But image ads usually take up multiple ad slots -- does this limit the amount of money that I can make?" Good question, but no -- for an image ad to appear on your site, it has to produce an effective CPM greater than the sum of the individual text ads.
For a more detailed explanation about how Ad Rank is calculated, visit the AdWords Pricing overview.
UPDATED: Image
3 comments:
I was wondering about auctions. It is something I had never taken into account as a publisher. I think after reading this post I really learn about Google ads' backstage. I always thought it was some kind of physical auction held some place and I was worried about the time of the day when it was run. Now I realize the time is irrelevant. And it is easy to jump to the conclusion that rich content and relevant words really count. Thanks for your help.
It is very interesting that banner ads can take the place of those individual text ads without reducing the click-though ratio.
Do I have any control over whether the ads that display on my site are cost per click or cost per impression? If so, how do I change that?
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