The Average Rank is the sum of all the ranking positions divided by the number of keywords.
When a keyword is not ranked, its value in this formula is calculated as the search depth (expressed as the number of results) + 1.
For example, if a keyword is not ranked and the search depth is set to 5 pages (50 results), the value of this keyword in the formula would be 50 + 1 = 51.
With a search depth of 10 pages (100 results), the value assigned for a keyword not ranked would be 100 + 1 = 101.
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