Ad Rank is the ad position that a paid ad takes on a Google Ads auction. It is influenced in real time by the bid, the Quality Score & various other factors. Ad Rank decides if / when / where the ad appears.
For example: 10 advertisers want to show an ad for a specific keyword in the search results. The Google Ads auction will then calculate which Ad Rank the ads receive.
It should be noted that in the real-time calculation, other factors flow into it, which ultimately determine the Ad Rank (device user, location user, time, etc.), see article Quality Score. The next paragraph describes how theoretically bid and quality factor influence the Ad Rank.
Calculation Ad Rank
The Ad Rank is calculated in the first step by multiplying the Quality Score with the bid. The higher the ad rank (value), the better the placement. The following example should also illustrate that the quality score is crucial, how high the costs are, and ultimately the return on investment (ROI):
Advertisers 1: Quality Score 2 x bid 3 Euro = 6
Advertisers 2: quality factor 5 x bid 1.50 Euro = 7.5
Advertisers 3: quality factor 10 x bid 0.80 euros = 8
Although advertiser 1 makes a bid of 3 Euro, he only has the last Ad Rank # 3, and thus appears bottom. Here, the low quality factor has a strong impact on cost & placement. The Quality Score 10 from the advertiser 3 not only saves not only money, but reaps the first ad rank.
Ad Rank # 1 - Advertiser 3 (Value 8)
Ad Rank # 2 - Advertiser 2 (Value 7.5)
Ad Rank # 3 - Advertiser 1 (Value 6)
There are two ad positions: Above or below the organic search results. The goal is (usually) for advertisers is to appear above organic search results, because they Click-Through-Rate (CTR) and conversion rate are much higher.
However, Ad Rank 1 does not automatically mean that the ad appears above organic search results, or that it can actually be seen on Google Search. Here comes another Google criterion used, the minimum ad rank.
Minimum Ad Rank
Minimum Ad Rank is designed to ensure that only relevant ads above and under the organic Google search results appears . Where the limit is is not specific to each business unit and keyword. It should be noted, however, that a very low Quality Score of 2 or 3 is likely to be insufficient to consistently appear above the search results. Here appears in the Google Ads Software the message "Rarely delivered (low quality factor)". A Quality Score of 1 and below is highly unlikely to be displayed.