ad rank
As you've already read, ad rank is determined by your maximum click price. All bids are ranked in order of their set maximum CPC. Your actual CPC then depends on you just beating the next highest bid from a competitor (hence the "+ €0.01" in the formula). The one with the highest bid and the best ad quality ultimately secures first place.
Quality Score
If your ad is particularly relevant to the target audience, Google will lower your cost per click. Relevance is essentially determined by how well the search query, ad text philippines whatsapp resource and linked website harmonize with each other. The expected click-through rate (CTR) is also taken into account. The quality score is rated on a scale of 1 to 10. A good quality score can have a positive effect on your ad rank and click prices. Your goal should therefore always be to keep the quality score of your ads higher than five.
In order for your bid to prevail over that of your competitors, you should always expect to pay at least one cent more than them. The click price is then calculated using this formula:
CPC formula
Competition
In addition, you should not neglect the existing competition. Because, as is usual on auction platforms: the more bidders participate, the higher the price usually shoots up. However, in practice, even a single competitor with a high level can be enough to drive up your click price. Similar to Meta, Google Ads is about placing quality ads that stand out from the competition in order to achieve the best possible result!
We have shown you an example of the interaction of the various factors here:
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