Ad Rank Algorithm now use Ad Extensions to Determine Ad Positions
When it comes to giving position to text ad, Google has used same algorithm for over a decade, however they have changed ad rank algorithm by implementing Ad Extensions as the factor to determine ad positions.
Though adwords will continue to use its old formula of Max CPC X Keywords Quality Score to define Ad Rank by just adding well performing Ad Extension. For Example if you have two ads with same maximum CPC and Quality Score, then the ad with more impact from the Ad extension will win the auction and rank higher in search page.
With Google Done so many changes in the year 2013. This change is not a major change like Enhanced Campaign they rolled out last year.
How Does It Matters to Your Campaigns?
To put it in breif, If you are managing an adwords campaigns and not using ad extensions for your ads then you should start using it. Google encourage to use all available ad extensions and google will display most relevant extensions to your ad. And the best performing ad extension will impact CTR and user experience which will improve ad position in search results.
Here are All available Ad Extensions and how to choose the Right Extensions for your Business.
Location Extension associates a physical location of you business with the text ad. To use this extension you should have a physical location where your customer can visit.
Location Extension is an account level extensions. Account-level extensions allow easier setup and give you the option to set up filters to prevent extensions from showing up on campaigns where they don’t make sense. Locations extensions perform well when an user types a keyword with nearby location. This improves user experience as users see location extension to know where the business is located.
Phone call connects you directly to potential customers.
This is a multi screen world if your customer search while they are on the go on mobile or tablet they would surely prefer to call you. If you get more conversions from calls use call extension in you campaign.
Image speaks more than words.
Google is still testing image extensions in adwords and its not available for everyone, but you can request adwords account team to enable image extension for your account. They will review your account and might give you access to image extension. Image can be very powerfull feature but you have to be number one in position for image extension to display. Image will be linked to your Destination URL.
All the positive reviews you have received from different sources now its time to showcase them. Read the review extensions policy guidelines to learn what reviews can or cannot be approved.
G+ is widely used social community and you can link it with your ads. To have ads appear with social extention you have to connect you account with google plus. and have 100+ followers on your google brand page.
Apart from these above extension you can ad sitelinks to give more options to users to know more about your services and products.