Which Best Describes the Relationship Between Maximum Cost-per-Click Bids and Ad Rank

Last updated: February 23, 2023

Marketing and advertising on Google can sometimes be complicated; selecting the wrong advertising options can result in unnecessary expenses. However, one important question can be asked to determine the best approach for a specific advertising option, and that is: which best describes the relationship between maximum cost-per-click (max. CPC) bids and ad rank?

CPC bid only affects Ad Rank on the Search Network.

An increased CPC bid leads directly to a small increase in Ad Rank.

CPC bid is one factor that affects Ad Rank.

An increased CPC bid leads directly to a large increase in Ad Rank.

The correct answer would be “CPC bid is one factor that affects Ad Rank.” This is because there are two primary components of an Ad Rank; the quality of your website and ads and your bids. When your Ad Rank is computed, Google will incorporate how well it expects your other ad formats and extensions to do. Things that factor into play when making this calculation include how prominent the formats on the search results pages are as well as the extensions, clickthrough rates, and relevance.