An expected move from Google again, it is about AdWords. Google is updating and improving the Ad Rank Algorithm of Google AdWords. This is done to add some new features they have to add this year. Mainly their new ad extensions will be considered on the first priority. Now the positioning of your ads would be affected by the ad extensions and formats on Google search results page.
This is being elaborated with the help of an example: If two identical ads have to appear with the same quality score and bid, then the ad which is having an ad extension will be placed on the higher ad position. The appearance of ad extension also depends on the ad rank. The ad which is of high quality score or bid or both, has more chances of getting extensions.
The announcement says that the ads which seems to perform well and having ad extensions may witness higher click –through rate and low cost per click. The ads without the advantage of their concerned projections could see their CPCs go up.
Your account may witness higher or lower CPC’s. If your formats and extensions are highly appropriate, then your account may witness low CPC. You may see higher CPC if there is any improvement seen in the add position or the competition of your ad is increased with the high impact from formats.
The advertisers are advised to use extensions in their ads because the positioning is also affected by Ad Rank. The advertisers who have not added extensions to their ads have to incorporate them in their campaigns. The ad platform will itself choose the ad extensions which should be used and it depends upon the CTR performance. Currently the ad rank is only affecting the placement of advertisements on Google search page. If you have not entered into Google Ad Words extensions, then you can take help from the help pages being added by Google. The main aim of adding these help pages is to spread awareness in advertisers about different ad extensions and method of enabling them.