A little while ago, back in October 2013, Google changed its AdWords Ad Rank calculation to start factoring in ad extensions and formats. And, just this last week they finally updated the accompanying video addressing the changes.

If you’re new to PPC, Ad Rank is the primary way Google differentiates the order in which to show its ads and the cost-per-click. Now Ad Rank is becoming the biggest factor in determining if an ad is eligible to display with extensions and formats.

Extensions are the little links towards the bottom of an ad, that can show extra information about your business. Click here to learn more about ad extensions from Google. Ad formats pertain to the style of your ad, whether it be an image, video, product listing, etc. Click here to learn more about ad formats from Google.

In the video Chief Economist at Google, Hal Varian, walks users though the factors at play in Ad Rank and goes over how it is calculated and ways all of us as advertisers can raise our Ad Rank.

While the information is roughly the same, the presentation is not. Although it is kind of boring, it is very helpful in understanding how ads work in Google…