How do Google Ads Search Algorithms Work? What to Know

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Understanding how the algorithms of Google Ads work is a great way to really get results from your ads. Ad algorithms are based on mathematical calculations and several factors which determine when and where your ad will appear (including keywords and audience size). Essentially, they are a strategy to optimize the potential of your ads.

How do Google Ads Search Algorithms Work? What to Know

The ad algorithms of Google Ads can be complex to understand at first, but it will allow you to better understand the way your ads are displayed. Each aspect of the ad algorithm has a role, and when combined, the reach and impact of your ads can be higher.

Algorithms are basically a set of instructions that are used to solve a problem. The algorithms of Google Ads work by allowing algorithms to track and measure multiple signals, performance, and actions. They also have a goal of maximizing conversions in order to maximize ad dollars.

The Google Ads ad algorithms are very complex, and they are constantly working to ensure that they will get the most conversions, impressions, and clicks. However, the ad algorithms are always changing, so it is important to keep up-to-date on what is happening as new aspects are added.

A Guide to the Main Google algorithms

1 – Ad Position

The ad algorithms have an important role in the ad position, which is the main factor that determines where your ad will appear. It is the position of your ad that is crucial to the success of your campaign.

The position of the ad will depend on a few factors, including your bid, delivery, performance, and quality score. You can control where your ad will appear, but there are certain limiting factors (including the competition and some Google algorithms).

The higher the position, the more likely it is that your ad will appear ahead of the other ads. It is important to note that while higher positions are better, the position is not the only factor in getting a click.

2 – Quality Score

The quality score is a very important factor in the ad algorithms. Quality score is an aggregate score based on a number of factors, including clicks, impressions, ad relevance, etc. A high quality score means a better chance of your ad being displayed.

A high quality score is not an indicator that there is a low quality ad. In fact, ads with a low quality score can be very high quality.

3 – AdRank

AdRank is an important algorithm that is used to determine the position of ads on a page. The rank is based on your quality score, ad position, and performance. You can also see the AdRank on the Keywords tab on the “Ad performance” tab of the ad group.

AdRank is calculated by multiplying Quality Score by the bid by the ad position. As AdRank increases, it can also change the ad position. This means that the ad algorithm will determine the best (most likely to earn the most)


While understanding the ad algorithms can be complex, it will help you understand how your ads are being displayed. Understanding the ad algorithms will also help you use Google Ads to its full potential. As a result, it is important to keep up-to-date on Google Ad algorithm updates as they are constantly changing.

If you are in need of a reliable Google Ads agency, come to Happy Agencies. Whether you are getting started as a marketer or building your new agency, you will find here tons of resources to push to the next level.

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