There are a number of factors that go into how search engines determine paid ad rankings. These factors, such as bid amount, auction time, ad quality and more, are part of an algorithm used by each search engine, designed to measure different facets of SEM and their credibility. Bid Amount The bid is determined by the amount each advertiser is willing to pay for each ad click. While higher amounts may improve the ranking of the ad, it’s not the main or only thing that matters. Quality Score Many search engines have quality scores, which calculate both the relevance and quality of your ad and landing page. Different search engines will evaluate differently, but shared metrics can include click-through rates (CTR), ad quality and more. Ad Rank Most search engines use this formula to decide where ads will rank on respective pages. The bid amount is multiplied by the quality score. This way, your quality score can still make you stand out even if your bid could have been higher. There are many other cogs in the machine of paid search advertising that decide the ranking of an ad, including: The format of your ad, The target demographic of each ad, such as location, The devices that each ad is tailored for, The position of your ad on the page, Tools that heighten the visibility of an ad (such as ad extensions), The overall usefulness and relevance of each ad, The history of your previous ads and their performance, Your daily or monthly budget. At WebSavvy, we know that paid ads are all about the details. Technical expertise impacts the return on investment (ROI) – but so does regular upkeep, stellar copy and ongoing optimisation. We’re the leaders when it comes to making sure your paid ads can help you grow your business in all the best ways.