How does Ad rank impact Cost-Per-Click?

[nikkispanish7]

How does Ad rank impact Cost-Per-Click?

[Sonika11Mehra]

AdRank in AdWords is a key AdWords marketing concept that plays a huge role in determining how prominently your ads are displayed in a SERP and also your cost-per-click. So, when Google quietly announces huge changes on how AdRank is being calculated, you should definitely pay attention!

AdRank determines the order in which competing ads should be ranked on a SERP, which (obviously) has a huge impact on the visibility of your ads to potential customers.

A less known (and more confusing) fact about AdRank is that it plays a huge role in determining the actual cost-per-click that your competitors pay when someone clicks on their ads.

For more info: http://selnd.com/2iwWMSZ

[ajay49560]

Quality Score is Google's rating of the quality and relevance of both your keywords and PPC ads. It is used to determine your cost per click (CPC) and multiplied by your maximum bid to determine your ad rank in the ad auction process. ... The relevance of each keyword to its ad group. Landing page quality and relevance.

[fayeseom]

By now most companies realize AdWords is a cost per click advertising system but grasping how ads are priced still seems to elude many. That’s probably because the simple math has gotten a lot more complex since a black box element was introduced. To explain the impact of QS on pricing, I find it helpful to look at two things: a quick history of how it used to work when the math was simpler, and a short explanation of how Google makes money.