Your marketing company has created an enticing ad that receives many clicks relative to impressions.

An engaging ad that generates a high number of clicks compared to its impressions can positively impact the Google Ads auction by potentially boosting its Ad Rank.

• The ad could lead to a higher cost-per-click for the advertiser.
• The advertiser could receive more bids in the auction.
• The ad’s quality could reduce cost-per-click by at least 40%.
• The higher expected click-through rate could lead to a higher Ad Rank.

Explanation:

Google Ads determines ad placement using Ad Rank, which favors ads that are most relevant and useful to users. A strong click-through rate (CTR) signals high user interest and relevance, contributing positively to the expected CTR component of Ad Rank. As a result, ads with higher CTRs are more likely to achieve better positions and greater visibility. This system is designed to reward compelling, engaging ads with improved placement, ultimately increasing overall campaign effectiveness.