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How Does Ad Rank Impact Cost Per Click..?

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Thread: How Does Ad Rank Impact Cost Per Click..?

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    AdRank and Cost-Per-Click (CPC) After you set up a campaign, Google assigns you an AdRank based on three criteria: the amount of your CPC bid, the site's Quality Score, and the Ad Extensions, which are now required. The higher your Quality Score, the lower you have to pay in CPC to rank at the top of the SERP.

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    Cost per click directly depends on your maximum bid, quality score, and Ad Rank as per your competitors. For say your maximum bid is $5 and your competitor bid is $7, so as per your quality score and Ad rank, actual CPC gets effected.

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    Ad Rank is a basic formula that AdWords uses to order ads on a search engine results page. Ads with higher Ad Rank show in higher positions, and ads with lower Ad Rank show in lower positions. Google has not made public the exact formula for Ad Rank; however, the basic ingredients are well known.
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