The area of digital marketing doesn’t seem as simple as it used to be before. When you are trying to establish a digital marketing campaign, it is crucial to learn about certain factors that can help you compete against the competitors.
These factors include ad rank and cost-per-click. These two factors are highly intertwined with one another.
In this blog, we will discuss the relationship between maximum cost-per-click or CPC and Ad rank.
Correct Answer – CPC bid is one factor that affects Ad Rank.
Looking for the correct answer which best describes the relationship between maximum cost-per-click (max. cpc) bids and ad rank? Well, the answer is CPC bid is one factor that affects AD rank. An AD rank doesn’t entirely depend on just the maximum CPC bid. It is just one of many other factors that impacts the AD rank.
An AD rank depends on multiple factors like quality score, keywords, positioning of the keywords, ad landing pages, etc. So, just investing more money on your ads won’t secure the first place in the competition for your ad.
Firstly, an AD rank is simply the ranking of an ad on SERPs related to a certain keyword. The term AD rank is associated with Google ads or PPC campaigns only. Whenever a user has a query about a product or services and makes a Google search, the paid advertisements will show up at the top of the SERP. Now even these ads have ranking among themselves. Some come in the first position, while some second, third, and so on. These rankings are called the AD rank.
Moreover, an AD rank depends on multiple factors and not only the CPC of the ad. It means you cannot secure the first place for your ads in the SERPs just by paying more money. Let us take a look at the factors behind the AD rank.
Here are some of the major factors that affect the AD rank.
The cost-per-click is the amount of money you are willing to pay every time someone clicks on your ads. Cost-per-click is a term that is related to PPC campaigns.
Moreover, a click on your ad means traffic towards your landing page(generally website). Simply put, it is the money you invest to buy attention for your products/services through search engines.
The main aim of any kind of advertising campaign is to maximize your ad rank (which means more views). In this process, you minimize your cost-per-click.
Firstly, your ad rank is equivalent to the quality score, which you can multiply by the maximum CPC bid. Here, the maximum CPC bid means the maximum bid that you have specified for your keyword.
On the other hand, there are three factors that determine your quality score. These factors are the click-through rate or CTR, the relevance of the ad copy, and the landing page content.
There is a relationship between CPC and AD rank. We will show this by representing an equation that would help you understand this.
Actual CPC = {(Competitor AD rank) / (Your quality score)} + 0.1
Here in this equation you can see that the actual CPC of your ads will depend on the competitor AD rank, whereas your ad rank will depend on the maximum CPC bid of your ads. In practice the CPC of your ad will always be less than that of the maximum CPC.
When you achieve a high-quality score, it becomes a key to achieving a high ad rank while lowering the actual cost per click. Suppose your quality score is high; in such cases, your ad will also rank higher, but the cost per click will be low.
But, if you have a low quality score, it means you need to bid for a high cost-per-click. Only in that way will you be able to achieve the high ad rank.
Now, the main question comes: how do we improve the overall quality score by the click-through rate? Well, this is considered the variable that helps determine the quality score. Thus, it can further improve your ad rank while lowering your CPC.
You can add plenty of negative keywords, for example, phrases or words that you do not want to rank. You can use such negative keywords for your paid research strategy. Other than that, you can also use various kinds of compelling text aiming to create a relevant ad.
This way, you can create interesting advertisements that can attract a majority portion of the audience.
When you are trying to run an advertisement, you mainly want your ad on the search research pages without paying a fortune. If you start neglecting your maximum CPC bid just to achieve a high ad rank, then you may get a low return on the advertising investment.
You can focus on improving your quality score. This way, you can easily raise the ad rank. As a result, your cost-per-click will be reduced for better improvements in campaign results.
Hope this article helped you to know “Which best describes the relationship between maximum cost-per-click (max. cpc) bids and ad rank?”. The answer is CPC bid is one factor that affects Ad Rank.
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A self-proclaimed Swiftian, Instagram-holic, and blogger, Subhasree eats, breathes, and sleeps pop culture. When she is not imagining dates with Iron Man on Stark Tower (yes, she has the biggest crush on RDJ, which she won’t admit), she can be seen tweeting about the latest trends. Always the first one to break viral news, Subhasree is addicted to social media, and leaves out no opportunity of blogging about the same. She is our go-to source for the latest algorithm updates and our resident editor.
