Google will be changing the requirement for ads to show up above search results instead of to the right of search results according to a post on the Inside AdWords blog. Previously, Google only displayed ads above search results if the ad had a high enough Quality Score and it was the top ranked ad for that particular search. Ads will now be displayed above the search results if they have a high enough Quality Score; even if it is not the top ranked ad.
The post also announced that there would be an update to the portion of the Quality Score algorithm based on click-through rate, which according to Google is the “most significant component of Quality Score.” Because click-through rate is higher for ad in higher positions regardless of the quality of the ad Google factors in the position of the ad when determining that part of the Quality Score. The update will change how the position of the ad is factored into the click-through rate, which Google claims that the update “will result in more accurate Quality Scores.”