How Does Ad Rank Affect Your Cost-Per-Click (CPC)?
How Does Ad Rank Affect Your Cost-Per-Click (CPC)?
There’s always an amount of money to go with each marketing campaign. But the goal is simple: to reduce costs while achieving the best results. You go about this while running ads by first understanding how ad rank affects your cost-per-click. That and more is what you’ll learn from this article. And if you’re ready — let’s go!
First off, you might be new to the digital marketing world of internet ads. There can indeed be a whole load of strange words. You know — like ad rank, cost-per-click. And if you’ve been researching on these, you’ve probably seen such things as pay-per-click ads, Quality Score, among others.
Now, don’t get discouraged. They are all simple terms you’ll understand like a pro at the end of this article.
Table of Contents
Pay-Per-Click and Cost-Per-Click
For clarity then, let’s start with pay-per-click ads. Now, in the world of digital marketing, there are a couple of ads you’ll come across. And that includes social media ads, pay-per-click, etcetera.
Among these, pay-per-click ads are those that show your ads to users of a search engine, and you’d have to pay for every user that clicks on your ad. So, you’d be needing such platforms as Google Ads for these. The amount you pay for these clicks is what you call the cost-per-click.
At the beginning of every of your ad campaign, you’d have to define the maximum CPC bid you’re willing to spend. Based on the amount you’re ready to bid, you might get lucky and have your ads reaching more users.
However, more than your maximum bid, there is another parameter that determines your ad reach — and that’s the ad rank.
What is Ad Rank?
The ad rank is the position of your pay-per-click ad on a search engine result page (SERP). If your ad lines up fourth on the SERP, it’s got an ad rank of 4. As you’d expect, an ad rank of 1 defines the best quality and the highest possible. This ranking system is what determines the number of people seeing your ads.
Nevertheless, the ad rank is a function of your maximum bid. So spending more might raise your ad rank. But remember — that’s never the goal!
The point is to increase this ad rank while not spending more. And the way you do that is by increasing the other parameter affecting your ad rank. That is your quality score.
The quality score shows how helpful your ad content is to Google and its users. It’s a simple transaction: Give Google users content they fall in love with, and Google will appreciate you by ranking you higher. And how do you increase your quality score?
Quality Score Ad rank
Well, quality score depends on a lot of factors, but quickly, these three are vital:
- Click-Through Rate
- Landing Page Content
- Ad Copy Relevance
Click-Through Rate defines the number of actual clicks you’re getting. And to get clicks, you need to put yourself where Google users can find you. In other words, it all starts with researching the best keywords — including negative keywords. You want to get right-down specific on what the user might be searching for and how your ad is relevant to that search.
On the other hand, landing page content demands you have exactly what your ad promises. If many users think your page content and ad are worlds apart, Google will notice that too through the users’ behavior and score you low on quality.
Finally, gone are the days when your maximum bid was all your ad rank needed. Today, Google places preference on ad copies relevant to the user searches. It’s your job to ensure the relevance of your ad copy.
In the end, as your quality score increases, your ad rank follows on high too. But your cost-per-click remains on the low. In other words, the key to reducing your actual cost-per-click while raising your ad rank is to increase your quality score.
Straightforward, isn’t it? Now that you know, it’s time you start ranking higher while spending less!
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