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Impact of Quality Score on Max CPC

Learn how the quality score impact the Max CPC of the Ads

RankDigitally
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Impact of Quality Score on Max CPC

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  1. Impact of Quality Score on Max CPC - Rank Digitally

  2. What is Quality Score? Quality Score is defined as the relevance of both keywords and PPC ads. It is multiplied by maximum bid to determine the Ad Rank. www.rankdigitally.com

  3. What is Max CPC? A Max CPC is the bid that advertiser set to determine the highest amount that he’s willing to pay for a click on the ad. www.rankdigitally.com

  4. How to check the AdWords Ad quality score? Ads are shown according to Ad Rank which is calculated on the basis of following factors- • Landing page optimization • CTR or click through rate • Ad relevance and format of the ad. www.rankdigitally.com

  5. It is not true that Ad with highest bid will always be at the top position . Let’s understand this with an example. Ads Bid Quality Score Ad Rank (Bid*QS) Position as per Ad Rank A 4$ 2 8 3 B 3$ 3 9 2 C 2$ 6 12 1 D 1$ 2 2 Not Shown www.rankdigitally.com

  6. Now arranging Ads according to the position Ads Bid Quality Score Ad Rank (Bid*QS) Position as per Ad Rank A 2$ 6 12 1 B 3$ 3 9 2 C 4$ 2 8 3 www.rankdigitally.com

  7. Max CPC is calculated on the basis of amount that advertiser need to pay ad shown below it and calculated as following = Ad Rank of previous ad/ Quality Score of Ad Score Ads Bid Quality Ad Rank (Bid*QS) Position as per Ad Rank Max A 2$ 6 12 1 1.5$ B 3$ 3 9 2 2.67$ C 4$ 2 8 3 Min www.rankdigitally.com

  8. Now suppose B improves his QS to 5 then it’s Ad Rank becomes 15 so then above positions become. Ads Bid Quality Score Ad Rank (Bid*QS) Position as per Ad Rank Max A 3$ 5 15 1 2.4$ B 2$ 6 12 2 1.6$ C 4$ 2 8 3 Min Now he only pays 2.4$ instead of 2.67$ after improving quality of his ad so, when quality improves max cpc reduces. www.rankdigitally.com

  9. Thank You! You can check my blog www.rankdigitally.com for anything related to Digital Marketing. Connect with me on LinkedIn Twitter Facebook Google + YouTube Pinterest Instagram

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