Your client runs an ad that gets a high number of clicks relative to the number of impressions.
What impact could this ad have on the Google Ads auction?
- The ad quality could lower cost-per-click by 40% or more.
- The ad could help the advertiser receive more bids in the auction.
- The ad click-through rate could lead to a higher Ad Rank.
- The ad could increase the cost-per-click for the advertiser.
Explanation:
Given the scenario you’ve described, where the ad is receiving a high number of clicks relative to impressions, several impacts on the Google Ads auction are possible:
- The ad click-through rate could lead to a higher Ad Rank: If the ad is generating a high click-through rate (CTR), it indicates relevance and usefulness to users, which can positively impact the ad’s Ad Rank. Ad Rank is a key factor in determining ad position and eligibility to appear in Google Ads auctions. Higher Ad Rank typically leads to better ad placements and visibility.
- The ad could help the advertiser receive more bids in the auction: Successful ads tend to attract more attention from advertisers. If your client’s ad is performing well, it may encourage competitors to bid more aggressively to compete for similar keywords or audience segments. This increased competition can lead to higher bids and potentially higher costs per click (CPC).
- The ad quality could lower cost-per-click by 40% or more: High-quality ads with strong relevance and engagement metrics often benefit from lower costs per click. Google Ads rewards advertisers whose ads provide value to users by offering them lower CPCs through mechanisms like the Quality Score. If your client’s ad is achieving a high click-through rate relative to impressions, it’s likely to be seen as more relevant by Google, potentially resulting in lower CPCs.