Let’s talk about Ad Rank and quality score…
You may wonder why you always see a competitor’s ad above your ad on the Google search results. The reason why someone else’s ad is above your’s is because they have a higher Ad Rank score, as it is the Ad Rank score that determines who’s AdWords ads show up on the first page and what in order they show up in.
Ad Rank is made up of your bid amount and your quality score (and now also your use of ad extensions).
No one outside of Google knows the exact Ad Rank formula, and it is certainly a very long formula. But it is commonly thought of to be something like: