Google is rolling out changes to AdWords Ad Rank thresholds: What you need to know

Google has been accelerating the rollout of new Ad Rank thresholds since early May. Some advertisers have reported seeing shifts in AdWords CPCs since then — some minimal, some significant. Here’s a look at what’s changing.

First, some background. Ad Rank determines where an ad appears on the page and is based on a calculation of max CPC, expected CTR, ad relevance, landing page experience and the expected impact of ad extensions and other ad formats. Ads need to meet Ad Rank thresholds, or minimums, in order to show on the first page of results. Typically, thresholds are higher to show at the top of the page above the organic results than they are for ads to show at the bottom of the page. In addition to position, thresholds can also vary depending on factors such as country and device.

There are two key factors in the Ad Rank threshold change rolling out now:

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