Ad Rank

Definition:

A value that determines the position of an ad in search results, based on bid amount, ad quality, and relevance

Example:

Suppose there are two advertisers, Advertiser A and Advertiser B, who are both bidding for the keyword “online shopping”. Advertiser A bids $2.00 per click, while Advertiser B bids $1.50 per click. However, Advertiser B’s ad has a higher quality score, meaning it is more relevant to the search query and has a better click-through rate.

When a user searches for “online shopping”, the search engine determines the Ad Rank for each ad based on its bid amount, ad quality, and relevance. In this case, Advertiser B’s ad may have a higher Ad Rank despite having a lower bid amount because of its higher quality score. As a result, Advertiser B’s ad may be displayed higher in the search results, potentially resulting in more clicks and a better return on investment.