A keyword-targeted ad is ranked on a search result page based on the matched keyword's maximum cost-per-click (CPC) bid and Quality Score. Note that some search network partners may adjust ad position based on their own system.
Ad Rank = CPC bid × Quality Score
The Quality Score for Ad Rank on Google and the search network is determined by:
- The historical clickthrough rate (CTR) of the keyword and the matched ad on Google; if the ad is appearing on a search network page, its CTR on that search network partner is also considered
- Your account history, which is measured by the CTR of all the ads and keywords in your account
- The historical CTR of the display URLs in the ad group
- The relevance of the keyword to the ads in its ad group
- The relevance of the keyword and the matched ad to the search query
- Your account's performance in the geographical region where the ad will be shown
- Other relevance factors
A note about appearing above the search results:
Up to three AdWords ads are eligible to appear above the search results (as opposed to on the side). Only ads that exceed a certain Quality Score and CPC bid threshold may appear in these positions. If the three highest-ranked ads all surpass these thresholds, then they'll appear in order above the search results. If one or more of these ads don't meet the thresholds, then the next highest-ranked ad that does will be allowed to show above the search results.
The CPC bid threshold is determined by the matched keyword's Quality Score; the higher Quality Score, the lower the CPC threshold. This ensures that quality plays an even more important role in determining the ads that show above search results.
