Search ads with "extensions" have generally benefited from Google's recent Ad Rank update, though overall paid search ad performance has declined, according to a recent analysis by The Search Agency.

The Google update, unveiled on October 22, 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.

According to The Search Agency's analysis, 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%.

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image of Ayaz Nanji

Ayaz Nanji is a digital strategist and a co-founder of ICW Media, a marketing agency specializing in content and social media services for tech firms. He is also a research writer for MarketingProfs. He has worked for Google/YouTube, the Travel Channel, AOL, and the New York Times.

LinkedIn: Ayaz Nanji

Twitter: @ayaznanji