This isn’t particular new or ground breaking news, its been around for a while but I thought it would be important to run through how Ad Extensions now affect your Adrank (basically the rank where your ad appears on the page among your competitors).
Previously Adrank was pretty simple to work out. The formula went something like this:
Your max CPC Bid x Quality Score. The best combo wins the race to the top.
Now Google has decided to incorporate something else in the mix. Introducing the involvment of your ‘Ad Extension’ factor. This factor is the “the expected impact from your ad-extensions and formats” (more detail here).
So take the above simple formula and add an arbitrary ‘Ad Extensions’ factor and you have your new determinant of Adrank! Well.. its actually easier than you might think.
So if all things were equal and there are two competing ads with the same bid and quality score, then the ad which is deemed to have the most positive expected impact from extensions will in most cases, appear higher. This all sounds a bit hearsay but Google does kind of make it easy in that they will generally show the highest performing combination of ad extensions and formats as it deems appropriate.
In simple terms, use the ad extensions! Use them all and try to incorporate them into your tracking and your strategy, Google will then choose what is best. Don’t do it.. then your competitors are already one step ahead of you (literally!).