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Understanding Google’s Ad Rank Formula in PPC

Samuel Edwards
|
June 3, 2023

Everyone that has worked with pay-per-click (PPC) ads knows how competitive the landscape is. PPC is all about jockeying for ad position, and it’s an endless struggle against your fiercest competitors.

Needless to say, PPC is a cutthroat industry.

If only there was a way to gain some type of advantage…

Actually, Google ads uses an ad rank formula that’s responsible for advertisers fighting for online placement. Understanding how this ad formula works can provide you with a competitive advantage.

Google’s ad formula is broken up into three different parts:

  1. The maximum cost per click (CPC) of your bid
  2. Your auction time ad quality score/quality score
  3. The impact from ad configuration and ad extensions

Honing in on these areas and ensuring they are top quality will undoubtedly help your ad  rank at the top of any search page. Below, you’ll learn all about Google ad rank formula and begin putting in the work to outrank your top competitors.

Cost Per Click (CPC)

The first area of Google’s ad rank formula we’ll discuss is the CPC of your bids. When you think of an ad rank position, think of how popularity existed in high school. Everyone wants the top spot, but you’ll have to be willing to pay to get there.

By using Google’s keyword research tool and browsing your own dashboard, you can quickly learn where you ad ranking in relation to the top spot of your chosen keywords. In fact, Google does all of the hard work in telling you how much you’ll need to bid to reach the top spot for a keyword.

Though, sometimes this feature isn’t completely accurate. A general rule of thumb to follow is when you add a new keyword to your dashboard, view the estimate from Google’s dashboard, and round up to the nearest ten to determine your maximum CPC bid.

For example, if Google shows an estimate of $14.26, you should expect to spend at least $20. After a few days of running your campaign, you can start lowering your bid if your google ads are doing great and lowering it if they are performing poorly.

The status column will let you know if your bid is below the first page bid. Until you receive any information otherwise, you should place your maximum CPC bid at the amount Google requests for your ad rank on the first page.

Cost Per Click

Lastly, the average position column on the Google Ads dashboard is where your ads are showing up live. To recap, the first three positions are at the very top of Google search results page/Search Engine results page and are the most likely to be clicked on.

All other positions will fall to the other pages on Google and will likely never be clicked on. This column should help any advertiser let you know when to raise and lower your build. Your choice should be based on where you want your ad rank to be positioned on Google and the budget you have to spend.

When you are in a very low position, you should double your bid. On the other hand, if your ad is in a top position, you should slowly lower your bid to take advantage of a few extra clicks for your budget. Or, you can use automated bidding.

When you’re new to setting up a Google ads campaign, expect to raise your bid at first to optimize your placement and budget. When you begin to figure out the right budget to achieve your desired placement, you can scale back your spending.

In addition, you may want to visit our guide for methods on how to lower your cost-per-click.

The Quality Score

To use another analogy, your campaign’s quality score is similar to being a well-rounded student when it’s time to complete college applications. Your quality score is determined by:

  • Expected Click Through Rate — This is how many people will click on your ad and travel to your landing page.
  • Landing Page Relevance — This is a measurement of how relevant your landing pages is to your ad. For example, if you’re selling shoes through an ad, your landing pages can’t be focused on pants.
  • Ad Relevance — This is a measurement of how your ad relevance to the keywords you’re using.

With all of that said, here are some tips to follow to make sure that your campaign has an exceptionally high quality score:

  • Make sure that your ad matches your keywords. For example, if your ad group is focused on winter boots, your ad should mention winter boots. Include relevant keywords in the display URL and headline of your ad.
  • Your landing page experience should also include your focus keywords. If you don’t have a specific landing page, you should send people to the most relevant page on your website.
  • Improve your CTR by making sure that your bid is in a great position (1 or 2). You can do this by including a bunch of negative keywords, a compelling call-to-action (CTA), and captivating ad copy.

Ad Formatting and Ad Extensions

Google offers more than seven Ad extensions to provide your prospects more information or ad formats, make your ad take up more room, and improve your ad rank. Extensions can undoubtedly make your ads look better.

In fact, with ad extensions, your ads can look like this:

Ad Formatting and Ad Extensions

You’re free to use as many ad extensions as you want. This will make it possible for you to showcase multiple sitelinks and CTAs. You can also use extensions to display call and location icons.

Finally, make sure that your sitelink extensions are written in title case to achieve the best presentation, and write callout extensions in sentence case. You also won’t need to use all 25 characters for callout extensions.

Improve Your PPC Ads Today!

It takes a lot of work and tinkering to improve your PPC campaign and turn your budget into a revenue stream. If you don’t have the time or expertise, hiring a PPC agency is definitely in your best interest if you want to lead more people to your website.

At PPC.co, we specialize in running successful campaigns for all kinds of industries. If you want to take your campaign to the next level, contact us today to speak to a member of our team.

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Author
Recent Posts

Samuel Edwards

Chief Marketing Officer

Throughout his extensive 10+ year journey as a digital marketer, Sam has left an indelible mark on both small businesses and Fortune 500 enterprises alike. His portfolio boasts collaborations with esteemed entities such as NASDAQ OMX, eBay, Duncan Hines, Drew Barrymore, Price Benowitz LLP, a prominent law firm based in Washington, DC, and the esteemed human rights organization Amnesty International. In his role as a technical SEO and digital marketing strategist, Sam takes the helm of all paid and organic operations teams, steering client SEO services, link building initiatives, and white label digital marketing partnerships to unparalleled success. An esteemed thought leader in the industry, Sam is a recurring speaker at the esteemed Search Marketing Expo conference series and has graced the TEDx stage with his insights. Today, he channels his expertise into direct collaboration with high-end clients spanning diverse verticals, where he meticulously crafts strategies to optimize on and off-site SEO ROI through the seamless integration of content marketing and link building.

Latest posts by

Samuel Edwards

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Author

Samuel Edwards

Chief Marketing Officer

Throughout his extensive 10+ year journey as a digital marketer, Sam has left an indelible mark on both small businesses and Fortune 500 enterprises alike. His portfolio boasts collaborations with esteemed entities such as NASDAQ OMX, eBay, Duncan Hines, Drew Barrymore, Price Benowitz LLP, a prominent law firm based in Washington, DC, and the esteemed human rights organization Amnesty International. In his role as a technical SEO and digital marketing strategist, Sam takes the helm of all paid and organic operations teams, steering client SEO services, link building initiatives, and white label digital marketing partnerships to unparalleled success. An esteemed thought leader in the industry, Sam is a recurring speaker at the esteemed Search Marketing Expo conference series and has graced the TEDx stage with his insights. Today, he channels his expertise into direct collaboration with high-end clients spanning diverse verticals, where he meticulously crafts strategies to optimize on and off-site SEO ROI through the seamless integration of content marketing and link building.

Related posts

Samuel Edwards
|
May 30, 2025
PPC Case Study: Tampa, Florida Apartment Complex

When this apartment complex client partnered with PPC.co, their goal was clear: generate more qualified leads through Google Ads. In just 60 days—from January to March 2025—we transformed their paid acquisition performance. Total conversions more than tripled, jumping from 10 to 32, while the overall conversion rate soared by over 300%. At the same time, we drove down the cost per conversion by 44%, delivering significantly more leads at a much lower cost. 

By strategically combining Performance Max and high-intent Search campaigns, we not only increased lead volume but improved overall efficiency and ROI. This rapid and measurable improvement underscores the value of data-driven optimization and expert campaign management.

January 2025

March 2025

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Campaign Analysis Summary

January 2025

  • Total Ad Spend: $498.63

  • Total Conversions: 10

  • Cost per Conversion: $49.86

  • Overall Conversion Rate: 1.12%

  • Campaigns Active:

    • Performance Max (PMax):

      • Conversions: 10

      • Conversion Rate: 1.12%

      • Cost per Conversion: $49.86

    • Search Campaign: No conversions or spend.

March 2025

  • Total Ad Spend: $898.54

  • Total Conversions: 32

  • Cost per Conversion: $28.08

  • Overall Conversion Rate: 4.64%

  • Campaigns Active:


    • Performance Max (PMax):


      • Conversions: 19

      • Conversion Rate: 3.74%

      • Cost per Conversion: $27.39

    • Search Campaign:


      • Conversions: 13

      • Conversion Rate: 7.14%

      • Cost per Conversion: $29.08

Strategic PPC Campaign Insights

  • Performance Max Improvements:

    • Conversions almost doubled (10 → 19) with just a 4.4% increase in spend ($498.63 → $520.45).

    • Cost per conversion was nearly cut in half ($49.86 → $27.39), showing better algorithmic targeting or improved creatives/landing page experience.

    • Conversion rate rose from 1.12% to 3.74%, indicating better audience alignment.

  • Search Campaign Activation:

    • Was inactive in January.

    • Delivered strong performance in March with a 7.14% conversion rate and 13 conversions at a very competitive $29.08 cost per conversion.

    • High interaction rate (7.65%) shows strong ad engagement and search intent alignment.

What’s the path going forward? 

  1. Continue Campaign Diversification:

    • The dual strategy of running both PMax and Search campaigns is proving effective. Continue scaling with both to diversify reach and conversion sources.

  2. Increase Budget Strategically:

    • Given the efficiency improvements (43.7% drop in cost per conversion), consider increasing the budget further to capitalize on momentum—particularly for the high-performing Search campaign.

  3. Refine PMax Targeting & Creative:

    • The Performance Max campaign is performing well but has room to improve conversion rate to match the Search campaign. A/B test creatives, refine audience signals, and check landing page relevance.

  4. Track Lead Quality:

    • Ensure that higher conversion volume aligns with high-quality leads or downstream metrics like closed deals or ROI.

‍

‍

The client was thrilled with the performance. As they put it, March 2025

‍

Conclusion

This case study is a testament to what can happen when a well-structured campaign meets expert strategy and continuous optimization. Whether you're launching a new property or looking to boost occupancy in a competitive market, PPC.co delivers real results—fast.

Ready to grow your leads and lower your cost per conversion?
Contact us today to schedule a free audit and discover how we can help you achieve similar results.

‍

Timothy Carter
|
May 26, 2025
How to Get Coaching Leads Through Cost-Effective PPC Campaigns

Whether you’re a life coach or a business coach, you need a steady flow of leads to stay profitable. It’s not enough to post on social media. No matter how popular you become, being well-liked and even loved doesn’t guarantee clients.

For coaching businesses, pay-per-click (PPC) campaigns can be a powerful way to attract high-intent leads – people actively looking for transformation, accountability, and clarity. But you can’t just throw some ads up on Google and expect results. You need a strategy that uses the right targeting, messaging, and structure to avoid expensive lessons in trial and error.

In this guide, we’ll break down the essentials of building cost-effective PPC campaigns designed specifically for coaches who want conversions, clients, and growth.

Everything begins with keyword research

The first step to creating any high-performing PPC campaign is identifying what your potential clients are searching for online. PPC ads show up in search results (Google, Bing) and social media feeds (Facebook, LinkedIn, TikTok) based on the phrases users type into the search bar when looking for content.

To get your ads seen by your ideal clients, you’ll need to tap into their innermost thoughts – like a burned out executive searching TikTok at 2:00 a.m. for “how to find my purpose” or “how to get a promotion.” You’ll want to target searches that indicate the user is unhappy and is looking for a solution that coaching can help them achieve.

Not all keywords are equal. You’ll get more leads that convert by targeting keywords that indicate a user is ready to take action. Use tools like Google Keyword Planner, Semrush, and Ubersuggest to find keywords with strong intent. High-intent searches might include phrases like:

·  Business coach for entrepreneurs

·  Life coaching to reduce stress

·  Life coaching to find my purpose

·  How to grow my small business fast

·  Career transition coaching

These and similar phrases related to your coaching business will be the foundation for your paid ad campaign on any platform.

Understand the customer journey

The customer journey consists of three stages that lead someone into the buying stage:

·  Stage 1: Awareness. The prospect is aware they need help, but they don’t know exactly what they need or how to get it.

·  Stage 2: Consideration. The prospect has named their problem and are actively looking for a solution.

·  Stage 3: Decision. The prospect knows they want to work with a coach, and they’re in the process of deciding who to work with.

If you’re running a full marketing campaign with email marketing, you’ll want to run ads that address leads in all three stages. The people you capture in stages one and two will need to be nurtured over time through email. Leads you capture in stage 3 can be more easily turned into a paying client faster. If you aren’t capturing emails yet, only target leads in stages two and three for the best results.

Define multiple client avatars for ideal targeting

No matter what type of coach you are, your ideal clients will have a variety of goals and pain points. Not everyone will share the same concerns or desires. For example, some business owners want to grow their business and open new locations, while others want to build a stronger team or increase their revenue. Some life coaching clients want better relationships while others want to find their life purpose. When you run ads, your target market needs to think, “this ad is for me.” Generic copy won’t cut it.

Your ad copy should target one avatar at a time

You’ll need to run a different ad campaign aimed at each client avatar. To get the most conversions, you’ll need to reach one avatar at a time. Speaking to one avatar in your ads and landing page copy allows you to go deep into their needs, fears, hopes, worries, and concerns. The more specifically you can connect with people, the more likely they are to convert.

To figure out what your ideal clients want, think about their struggles and the potential keywords they might be searching on various platforms. For example, a lot of people are unhappy at work. In this case, potential keywords they might be searching for include:

·  How to find a job that doesn’t suck

·  How to handle conflict at work

·  How to win respect at work

Once you know the pain points you want to target, craft your messages so they speak to emotional triggers. People respond to a sense of urgency (“Burned out? Don’t wait”), personal growth promises (“Find your life purpose in 90 days”), and emotional relief (“Stop second-guessing yourself”). Speak to where your ideal client is right now and show them you can take them where they want to be.

Using this information, you’ll craft ads with headlines, copy, and corresponding landing page copy that speaks directly to your ideal clients. For example, your ads might look like this:

Ad #1 Example

Problem/Keyword search: How to find a job that doesn’t suck

Ad headline: Hate Mondays? Let’s Fix That.

Ad copy:

You spend 90,000 hours of your life at work. Shouldn’t more of them feel fulfilling? Learn how to reconnect with purpose and enjoy what you do. Book your free clarity call now.

Ad #2 Example

Problem/Keyword search: How to handle conflict at work

Ad headline: Tired of Office Drama? Here’s Your Way Out

Ad copy:

Learn strategies to set boundaries and manage work conflict like a pro. Click for a free strategy session.

Ad #3 Example

Problem/Keyword search: How to win respect at work

Ad headline: Feel Invisible at Work? Let’s Change That

Ad copy:

You’ve got the skills. You put in the hours. But the recognition never follows. Sound familiar? Respect isn’t about being louder – it’s about confidence, clarity, and strategy. Book your free consultation and finally be recognized for your full value.

Use dedicated landing pages optimized for conversions

Just like each of your ads target a specific avatar, your landing pages need to do the same. Don’t send traffic to your homepage. Your landing page should reflect exactly what your ad promised.

If your ad says, “Executive Coaching for Burnout Recovery,” then the landing page should address burnout, speak directly to executive professionals, and offer a call-to-action (CTA) for a discovery call.

Effective landing pages consist of the following elements:

·  A dedicated page made just for your ad

·  A seamless transition from ad to landing page

·  A clear headline that addresses the pain point directly

·  Testimonials or results from real clients if possible

·  A strong CTA, like “Book your free 30-minute breakthrough session”

·  A clickable phone number or link to book a call immediately

Remember, you’re not selling coaching services. You’re selling a better version of your prospect’s life. Make sure your copy reflects that.

Be generous with your budget

Coaches often underspend on ads, thinking they can game the system with just $5/day. That’s not an effective strategy. What you may not realize is that setting a low budget actually reduces the number of people who see your ad. Your ad visibility increases the more you spend.

Start with a modest, but meaningful budget of at least $1,500-$2,000 per month. The good news is your cost per click (CPC) will be significantly lower than other industries, like legal and insurance. However, if you’re not sure how to set a PPC budget or handle bidding strategies, hire a professional PPC agency to manage your ads. It’s the easiest way to avoid costly mistakes.

How to target the right people at the right time

Your ads should target the right people at the right time.

First, think about your ideal client who is looking for your services.

Who hires coaches? Usually, it’s:

·  Entrepreneurs who feel stuck or overwhelmed

·  People who want to start a business, but don’t know where to begin

·  Mid-level professionals seeking career growth

·  High achievers facing burnout

·  People at a personal crossroads (divorce, job loss, mid-life crisis, etc.)

Once you pinpoint who might be looking for your services, you’ll need to choose the right advertising platforms. Your main options are:

·  Google Ads

·  TikTok Ads

·  Instagram Ads

·  Pinterest Ads

·  Facebook Ads

·  LinkedIn Ads

·  YouTube Ads

Advertising on each of these platforms comes with pros and cons – some are specific to coaching services. For example, while Pinterest is likely cheaper than Google, Pinterest leads might not be committed. However, TikTok and YouTube users frequently search for solutions to specific problems.

Don’t skip TikTok Ads

You might be surprised to learn that TikTok is a gold mine for coaching businesses. It’s not just an app for teens. Over 71% of TikTok’s users are between 18-34 years old, and 32% are 25-34 years old.

Unlike other platforms, TikTok doesn’t function like a typical social media platform where the purpose is to build a community. It’s more like an outreach platform and people are constantly discovering new content creators. The algorithm’s goal is to get as many people watching content for as long as possible. To achieve this, users are given content based on their interests, not just from people they follow. You don’t need followers or viral content to get seen. Each video stands alone in the algorithm and has an equal chance at getting attention.

People use TikTok to find insights and advice on just about everything you can imagine, including personal and business-related situations. While you can run ads on TikTok without a following, it helps to have an established account with solid content. You’ll build more momentum this way, and you can boost your native content to earn more trust across the platform.

Additionally, TikTok ads can target users based on hashtag interactions. People use hashtags on TikTok to find content more than any other platform. If you’re not advertising on TikTok, you’re missing out on clients.

Coaching clients aren’t impulse buyers, and they need to see your face and personality to know if they want to work with you. Wherever you run ads, you can expect people to click on your account to check you out. You’ll get more conversions by publishing short, engaging videos that show your authenticity and provide inspiration and support.

Whichever platform(s) you choose to advertise on, make use of custom audiences to target your potential leads as specifically as possible.

Negative keywords will weed out freebie seekers

Everyone wants clarity, but not everyone wants to pay for it. That’s why you need to block certain searches using negative keywords. You don’t want your ads to show up for people who are just curious, looking for freebies, or looking for unrelated services. They’ll just click on your ads, waste your ad budget, and potentially waste your time if they sign up for a free call.

Suggested negative keywords for coaches include:

·  Free coaching session

·  Coach training program (these people want to be coaches, not hire one)

·  Sample coaching questions

·  Coaching worksheets pdf

Defining these and similar negative keywords will keep your clicks high-quality and your cost per lead low.

Track conversions (not vanity metrics)

It can be exciting to see how many people are viewing and clicking on your ads, and there is a time and place to assess impressions and clicks. However, unless you’re focused on optimizing your ads, forget click-through rates (CTR) and look at how many calls you’re getting booked, how many contact forms are being submitted, and how many email addresses you’re collecting through your lead magnet downloads.

It’s crucial to know which campaigns are bringing you results so you can cut the ones that aren’t working.

Run retargeting ads to catch the ones who got away

People don’t usually buy high-ticket coaching packages the first time around. They need time to research, investigate, and consider their options. You might get some clicks and email signups from your ads that don’t turn into paying clients right away. That’s where remarketing comes in.

Set up ads on Google and Facebook to follow users who have already clicked on your ads and visited your website. Since these ads will be displayed only to people who have already interacted with your brand, you can use different value points to engage them, like testimonials, free guides, and limited-time offers.

Facebook retargeting options are pretty specific compared to other platforms. Since Facebook and Instagram are both owned by Meta, you can target people who have interacted with your Instagram page, too. You can even upload a list of your existing email subscribers from your segment that hasn’t yet converted and target them with relevant ads.

Ready to fill your calendar? Partner with PPC.co

At PPC.co, we help life and business coaches run PPC campaigns that turn clicks into clients. Whether you’re scaling a coaching business or launching your first coaching program, we’ll help you connect with the people actively searching for your services.
Contact us today for a free digital marketing consultation and let’s start turning your ads into paying clients.

‍

Recent Posts

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|
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|
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|
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