Setting Up Google Ads and Understanding Its Algorithm

Setting Up Google Ads and Understanding Its Algorithm

Google Ads set up is a powerful advertising tool that can help businesses reach a larger audience. But how does the Google Ads algorithm work? And how can businesses make the most of it?

A Google local services ad is one of the best ways to gain online traffic and clients for your business if your advertising is well-positioned on search engine result pages (SERPs) and your keywords of interest. That is a significant “if” that no marketing team should overlook.

Before we begin, let’s look at the philosophy behind Google Search.

What Are The Search Algorithms for Google Ads?

Have you ever pondered the scope of Google advertising? In seconds, Google must sift through billions of websites, partner sites, and content to pick the most relevant and useful search results and present them just how the searcher expects.

This is a huge accomplishment, and one way Google achieves it is by using algorithms to prioritize search results and sponsored advertisements. The search algorithms take into account information and factors such as:


Next, they assess the content of websites to see if the keywords displayed on these pages are related to the search query and data connected to various content types such as images, videos, lists, and so on.

Quality of the Content

Google analyzes the quality of information by looking for evidence of expertise, authority, and trustworthiness connected with pages. This might include the quality of websites that link to other pages and the overall quality of content and spam reports.

Usability of Web Pages

Google despises slow websites just as much as you do! Consequently, they evaluate website usability regarding responsiveness, loading speed, navigation, and other factors. The sites that they feel are more user-friendly are then promoted.

The context and settings are linked to the actual searcher and contain factors such as the searcher’s location or country, past search history, language preference, and so on. Personalization of their Google account is also considered.

So, to get started, let’s learn about the three key Google algorithms: Ad Position, Ad Rank, and Quality Score.

Advertisement Positioning

Google cautions that having an ad rank of “1” does not always mean that your ad will appear above the organic search results. Suppose the arrangement of the page prioritizes paid advertising above organic results. In that case, a #1 ad position will be the first to display there or appear below or beside the organic results.

Ad position on a Google SERP can determine where your ad shows on the page; for example, your ad could be at the top, side, or bottom of the page. 

Prominence measurements, such as your top and absolute top metrics, can provide a more accurate view of where your advertisements appear on SERPs. 

The main metrics that are most essential are impression rate/share and lost share. Improving the quality of your ads/landing pages and increasing your bid are two ways to improve these KPIs.

Advertisement Placement

For advertising in the ad auction, Google establishes Ad Rank, and your Ad Rank correlates to your Ad Position.

Let’s go a little more into the Ad Auction: anytime a user conducts a Google search, Google organizes a click auction. To participate in the auction, you bid on your desired keywords. The auction selects which ads will be displayed for that search based on the outcome.

Consequently, the ad with the highest Ad Rank will appear as the top ad for that particular search.

Quality Score

This is one of the most subjective Google Ads metrics, focusing on the effectiveness of your Google ad campaigns. Quality is critical since Google’s principal goal is to offer searchers precisely what they’re looking for. Furthermore, if your Quality Score is too low, your ad may be entirely disqualified from the ad auction. 

After all, Google does not want to tarnish its reputation by running detrimental advertisements.

The Quality Score ranges from 1 to 10, with 1 being the lowest and 10 being the highest. It consists of three primary components:


Google Ads algorithm is a complex system that considers various factors to determine where ads should be placed. While the specifics of the algorithm are unknown, it is clear that Google puts a great deal of thought into where you set up Google Ads to maximize revenue and user experience.

Digital Rogers is a data-driven digital marketing agency to set up Google Ads with. We provide high-quality digital marketing services that boost your company’s growth, awareness, and income. Contact us today!

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