Your marketing company has created an enticing ad that receives many clicks relative to impressions. What effect could the ad have on the Google Ads auction?

Analysis of Correct Answer(s)

An ad with many clicks relative to its impressions has a high Click-Through Rate (CTR). This is a crucial signal of ad relevance in the Google Ads auction.

• The Google Ads auction uses Ad Rank to determine ad position. Ad Rank is calculated based on your bid and Quality Score.
• Quality Score is comprised of three main components: Expected Click-Through Rate (eCTR), ad relevance, and landing page experience.
• A consistently high actual CTR is the strongest indicator for a high eCTR.
• Therefore, a high eCTR improves your Quality Score, which in turn increases your Ad Rank, leading to better ad positions at potentially lower costs.

Analysis of Incorrect Options

• "The ad's quality could reduce cost-per-click by at least 40%.": While a higher Quality Score often leads to a lower Cost-Per-Click (CPC), there is no guaranteed percentage reduction. This figure is specific and unsubstantiated.
• "The advertiser could receive more bids in the auction.": The number of bids in an auction depends on how many other advertisers are competing for the same keywords. The quality of your ad does not influence the number of your competitors.
• "The ad could lead to a higher cost-per-click for the advertiser.": This is the opposite of the intended effect. Google rewards high-quality ads with a higher Ad Rank, which generally allows advertisers to pay a lower CPC for a given ad position.