Mathematically, how you rank on Google Ad = Your Ad’s Quality Score x Ad’s Max Bid Per Click
What is Quality Score?
Quality Score is Google’s rating of the quality and relevance of both your keywords and PPC ads. Your Quality Score depends on multiple factors, including:
- Click-through rate (CTR)
- Landing page quality and relevance.
- The relevance of each keyword to its ad group
- The relevance of your ad itself
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 $ CPC, you will beat your competitors who bid $$$ CPC but have low quality-score 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.
It’s actually a little more complicated than that but I won’t go into the whole ad auction economics, that’ll take another 100 pages.