How is ad rank used to determine my ad position and cost per click?
Quality Score X Max Cost Per Click = Rank Advertiser A. Max CPC of .55 with a Quality score of 1.7 = assigned rank is .93 = position 1 Advertiser B. Max CPC of .65 with a QS score of 1 = assigned rank of 65 = position 2 Advertiser C. Max CPC of .30 with a QS score of 1.5 = assigned rank of .45 = position 3 Take B’s rank of .65 and divide it by A’s QS of 1.7 – .65 / 1.7 = .38 cents. – .38 is what Advertiser A has to pay + 1 penny added to place it above B’s position for a total of .39 cents. Take C’s rank of .45 and divide it by B’s QS – .45 / 1 = .45 cents. – .45 is what Advertiser B has to pay + 1 penny to place it above C’s position for a total of .46 cents This process repeats until the end of the auction where the last bidder pays the minimum bid required to be active in the action.
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