Google is changing AdWords' Ad Rank threshold, accelerating the roll out since early May 2017. As the update is rolling out, some advertisers have started seeing changes in their AdWords CPCs.
Ad Rank is what makes Google determines where ads should appear on its page, based on a calculation of maximum CPC, expected CTR, ad relevance, landing page experience, and expected impact of ad extension among others. Ads should meed Ad Rank threshold, which is their minimum, in order to show up on the first page of Google Search's results.
As for the update Ad Rank thresholds account for meaning of the query. What this meansm Google is taking context into account, like for example a query abouut recent news or consumer products. Different types of query categories may have different Ad Rank thresholds since they have different meaning.
This can also lead to more or less ads in showing on a search result.
The next change involves bids. They can take on more weight depending on the query meaning or category. Here, quality matters in determining Ad Rank, but Max CPCs may hold more weight in Ad Rank for some queries
Changes In Quality Scores
Quality Score is the only metric advertisers can directly add as a column in AdWords. With it, they can see Expected Click-through Rate, Ad Relevance scores and Landing Page Experience scores by hovering over a pop-up icon.
Google is working to make Quality Score, Expected Click-through Rate, Ad Relevance Scores and Landing Page experience scores easily accessible, and also added seven new Quality Score reporting columns. Google is also allowing advertisers to see some historical Quality Score data in Adwords.
Initially, the columns are also available at advertisers' manager account level.
The Quality Score metrics segment data by day. Advertisers can see how end-of-day Quality Score changes over time. If the ads weren't getting enough impressions and click data to report, Google won't report any score.
Additionally, advertisers won’t have to hover over the bubble icon next to keywords in order to get feedback on current Quality Score factors.