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Ranking/ How adwords prioritize ads
from:In today’s competitive world in which Charles Darwin’s theory of Survival of fittest has become bitter truth and fact of everyday’s life, there is an endless race amongst competitors to gain that extra edge. Businesses these days have their work cut out as in addition to providing a good quality product they also have to allocate and spent a good amount of money to make this product visible.
Advertisements are nothing but attractive templates that are circulated to make a product or service visible to audience so that they come to know about the product and can buy it. The media used for circulation can be print, audio or video like newspaper, radio or television. The business houses are spending a lot of money these days to grab consumer attention.
Adword is a system to advertise on Google and its allied partners in which the revenue is shared on per click basis called Cost per Click or CPC. In this system advertisers pay Google for this service, and in return Google shares this revenue with the other website owners who publish these ads.
The AdWords is responsible for local, national, and international distribution of adverts. These ads placed on search and content pages based on their Ad Rank. The first ad is the one with highest ranking so on and forth. The rank of Ads is determined on lot many factors which are defined as follows:
Ad Rank depends on the keyword content of the search string ads: Matched keyword's cost-per-click (CPC) bid and Quality Score of an ad determine the rank of a keyword-targeted ad on a search result page .The formula used is as follows
Ad Rank = CPC bid × Quality Score
The Quality Score appearing in the formula is based on the historical click through rate of the ad. To evaluate this historical data is monitored based on geographical region and the contextual searches
Search network on the content network
Up to three Adwords can appear on a search page. The three Ad words which would appear on a search page are determined according to Quality Score and Cost per Click of the text. The three Adwords that pass the threshold appear on the search page. This also takes care of the criterion that only those Ads are displayed that meets the standards.
The position where ad will be positioned on a given page.
The formula used to determine the position of ad is calculated according to the following formula where content bid where a content bit is set at ad group level.
Ad Rank = content bid × Quality Score
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