Mathematically, how you rank on Google Ad = Your Ad’s Quality Score x Ad’s Max Bid Per Click
(it’s actually a little more complicated than that but I won’t go into the whole ad economics, that’ll take another 100 pages).
And the top ~7-8 ranked ads are positioned from 1-7. If your ad is ranked below that, Google won’t show it.
This is really interesting because if you have a high quality score but bid at low $, you can still beat our competitors who bid $$$ but have low quality ads.
Let’s say Alex’s ad’s max bid is $4 and his quality score is 7. His ad rank score would be 21.
Let’s say we have a competitor, Bob, bidding at $10 but has a quality score of 2. His ad rank score would be 20.
21 > 20. Alex > Bob. Alex’s ad will show up above Bob’s ad even though he bided at less than half Bob’s bid.