Google introduced the term, passage indexing, in October 2020 to rank "passages" to help users find answers to specific questions easily. The term has been renamed to passage ranking, and it has been fully live in the United States since 2021-02-10.
What is passage ranking?
Google uses a proprietary algorithm called PageRank to rank websites for certain keywords and displays the results on its search engine result page (often referred to as SERP). Google's search engine is more than an engine that finds web pages for the information you're looking for. Google aims to help users find information quickly and accurately. It sometimes provides the answer or a snippet from a webpage with relevant answers, as shown below.

Google Phrase Search
Google is very good at finding answers to the questions people ask, and sometimes the answers to a specific question may be buried deep inside a webpage. It may be time-consuming for a user to review large amounts of data before finding an answer. Google is making another breakthrough, and it will not only index web pages, but also index passages from web pages and rank them according to the search phrase. By indexing passages, Google can predict the passage so that users do not have to read entire web pages to find answers. Google says passage ranking will affect 7% of search queries when fully rolled out worldwide.

Google featured snippets
Unlike Google featured snippets, the passage-based ranking will display the passage that contains the answer to the search phrase.
How does it affect our SEO?
In essence, there is no change in how Google indexes web pages and provides the results in SERPs. Google will now also index passages and use them alongside web pages to determine the most relevant results to show in SERPs. As a webmaster, SEO expert, or Website & SEO Company, you do not need to do anything differently to affect your search rankings. You should continue to focus on content rather than tactics to improve your ranking.
The beneficiaries of passage ranking will be those individual bloggers writing content without any SEO considerations and discussing various topics without a formal structure. Also, large corporations managing large volumes of data across multiple domains will benefit from passage ranking.
As passage ranking is a new algorithm added to the existing algorithms, whether it will affect your ranking positively or negatively is yet to be seen. However, it will likely improve search and help people find answers more quickly. If your content answers users' questions, it will perform better.
Conclusion
Google is making another breakthrough to help people find answers to their search queries quickly by implementing passage ranking. Ranking search results by passages makes it easier for users to find answers without reading the entire web page.
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