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LogoutAd Rank = Ad quality score x Max CPC [+ a combination of other factors, including the context of the search such as device and expected impact of ad extensions]
Ad Rank determines the positions in which ads participating in the auction are shown. The better the Ad Rank, the higher the position. The best Ad Rank gets the top ad position.
It takes into account an ad’s Quality Score and the advertiser’s Max CPC, plus the expected click-through rate (CTR) impact of the ad extensions and formats available. Here’s the basic formula.
Ad Rank has a big impact on the actual cost-per-click (CPC) an advertiser pays when someone clicks on their ads.
It is often misstated that advertisers pay one cent more than the advertiser in the spot below them. In fact, that’s really just one piece of the CPC calculation. CPC is calculated using this formula:
CPC = The Ad Rank of Advertiser Below/Quality Score + $0.01
In AdWords, because pricing is based in part on the Ad Rank of the next competitor, actual CPCs can
Ad Rank (Max CPC Bid x Quality Score) determines the position in which an ad is shown. The Ad Rank of the ad below is factored into the actual CPC that an advertiser will pay if someone clicks on their ad.
In the next chapter of our PPC Guide