Explain how does Ad Rank impact Cost-Per-Click?

[PoolMaster]

Explain how does Ad Rank impact Cost-Per-Click?

[imriakapoor]

A less known (and more confusing) fact about Ad Rank is that it plays a huge role in determining the actual cost-per-click that your competitors pay when someone clicks on their ads: Google charges Cost-per-click or CPC whenever someone clicks on your ad.

[WoodsPainting]

After you set up a campaign, Google assigns you an AdRank based on three criteria: the amount of your CPC bid, the site’s Quality Score, and the Ad Extensions, which are now required. The higher your Quality Score, the lower you have to pay in CPC to rank at the top of the SERP. Quality Score depends on your click through rate (CTR) along with subjective metrics, especially the user experience of your landing page and how relevant your page is to the keywords you’ve chosen. Each component mentioned above, along with strategies to improve your score, deserves its own webinar.

[ImpalaWardrobes]

Quality Score is Google's rating of the quality and relevance of both your keywords and PPC ads. It is used to determine your cost per click (CPC) and multiplied by your maximum bid to determine your ad rank in the ad auction process. ... The relevance of each keyword to its ad group.