Search ads with “extensions” have benefited from Google’s recent Ad Rank update for many years, though overall paid search ad performance has declined. The latest Google update on October 2013 affects how the search engine determines the order of paid search ads. In addition to maximum bid and quality score, Ad Rank now includes a third variable: the expected impact of ad extensions. These extensions add various functionalities to basic text search ads, including geographic locations, social annotations (Google+ followers), ratings, and direct app downloads.
Since the update impressions and clicks have increased 6% and 5%, respectively, for advertisements with ad extensions, whereas impressions and clicks have decreased 6% and 1%, respectively, for paid search ads overall. The average click-through rate (CTR) has declined slightly for ads with extensions, but average page position has improved 4% and cost-per-click (CPC) has gotten better, dropping 5%.
It is also important to note the impact of the update on specific types of ad extensions. With the exception of application extensions, clicks for all formats increased after the change became active. Specifically, location extensions and review extensions appear to be favored by the revised formula.
