A value that's used to determine an ad’s position in search results. Ad rank is calculated using your bid amount, the quality score (including expected clickthrough rate, ad relevance, and landing page experience), and the expected impact of extensions and other ad formats. This ad rank formula is, Ad Position = Max Bid x Quality Score x Expected Impact of Extensions. Every time your ad is available to appear. It is recalculated by competing in an auction. This means your ad position may fluctuate with each auction, depending on your opponents in the bidding war. What many people regret to remember is, there's more to ad rank than just bidding. The better the ad, the better the rank. Ad quality matters in ranking due to, ad auction eligibility, actual cost-per-click (CPC), ad position, keyword's ad position bid estimates, and eligibility for ad extensions and other ad formats. As previously stated, an all around better ad, will cut costs, and raise ad position. Thus creating more all around ad success for your company.
Ex. “Improving my advert’s relevance and increasing my bid helped me improve my ad rank.”