Google has been pushing the rollout of new Ad Rank update since early May. A few publishers have revealed seeing movements in AdWords CPCs after which some negligible, some critical shifts.
There are 2 vital factors in the Ad Rank threshold that's being changed:
1) With this change, Ad Rank threshold can be founded on the significance of the search inquiry. All over, this appears to be obvious, but it hasn't really been th case in past.
What this means is that Google is currently taking context, as whether a search term is about latest news, versus a consumer item, into consideration. These sorts of query categories may have diverse Ad Rank thresholds, since the query category varies. It can likewise prompt less or more ads appearing on result page. On a news-related query, for example, the threshold is probably going to be generally high, with less ads meeting the criteria than on an product related query.
2) Bids might be weighted more vigorously in the Ad Rank signals depending upon query meaning.
The two changes go hand-in-hand: bids might take on more weight depending on the query meaning or category. Quality factors play a major role in determining Ad Rank, but with this change, Max CPCs may hold more weight in Ad Rank for some queries.
The two things are here expected to changed as they are inversely related to each other. Bids may draw more importance here depending upon the type or category of query. Though traditionally quality factors has played important role in deciding the Ad Rank, but with this new update, Max CPCs may carry more weightage now onwards.
This update in Ad Rank is expected to roll out throughout May. Since it’s still under process of rolling out, the help center information has not been updated yet.