Google has recently announced a significant AdWords update. Ad Rank, the system that orders competing ads within Google’s search results page, now takes in to account the effect of ad extensions and formats.
Previously, Ad Rank was calculated using your max cost per click (CPC ) bid and your Quality Score only.
Whats new with Ad Rank?
The introduction of extensions in to the equation means advertisers may be penalised for not using ad extensions and competitors have a greater opportunity to influence an advertiser’s CPC.
In simple terms, if advertisers aren’t using extension and its competitors are it will directly impact their CPC.
MEC Opinion
It’s now more important than ever that we have as many ad extensions live as possible as this will effectively help to keep our CPCs down whilst maintaining our high positions.
What we recommend is that all ad extensions are actively discussed. We are aware not all extensions are possible and some take more planning and activation than others. However, a simple checklist as detailed below will help review what is live and where the opportunities lie.
Extensions Type - Example Audit
- Site Links – already running
- Call – previously discussed but not required
- Social – Google+ required – Social set up in progress
- Review – in progress
- Seller Ratings – min requirement, 30 reviews over 12 months with 3.5 out of 5 or more.
- App – N/A currently. Something for the future
- Image Ads – looking into currently