Which best describes the relationship between maximum cost-per-click (max. CPC) bids and Ad Rank?

Which best describes the relationship between maximum cost-per-click (max. CPC) bids and Ad Rank?

  • A CPC bid only affects Ad Rank on the Search Network
  • An increased CPC bid leads directly to a small increase in Ad Rank
  • A CPC bid is one factor that affects Ad Rank
  • An increased CPC bid leads directly to a large increase in Ad Rank

Right Answer:

  • A CPC bid is one factor that affects Ad Rank

Explanation:

AD Rank will calculate based on different calculations such as CTR, Nature of the AD, AD Relevance,  the person’s location, device, time of the search, the nature of the search terms, the other ads and search results that show on the page, and other user signals and attributes.

The AD Rank is always recalculated based on the performance which competes in BID Auction.  Depending on the competition, context of search and quality at that moment.

Generally speaking, the ad with the highest Ad Rank gets to show in the top position and the ad with the second-highest Ad Rank gets to show in the second position (assuming the ads clear the relevant thresholds), and so on.

The AD Rank has four factors:

  1. Your BID
  2. The quality of the ADS & Landing Page.
  3. The context of the persons’ search.
  4. Impact AD Extensions and other AD formats.

An Example:

Ad rank

For the average position metric, the advertiser with an Ad Rank of 80 (in the first position above the search results) will get position 1, the advertiser with Ad Rank of 50 (in the second position above search results) will get position 2, the advertiser with an Ad Rank of 30 (in the first position below the search results) will get position 3, and the advertiser with an Ad Rank of 10 (in the second position below the search results) will get position 4.

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