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?

|

Lata Bala

how CTR affects Ad Rank

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?

  • 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.
  • The advertiser could receive more bids in the auction.
  • The ad could lead to a higher cost-per-click for the advertiser.

The correct answer is:
✅ The higher expected click-through rate could lead to a higher Ad Rank.

Full breakdown: Why correct and others incorrect:

✅ Correct Answer Explanation:

Google Ads uses a metric called Ad Rank to determine your ad’s position on the search results page.
Ad Rank is calculated using multiple factors, including:

  • Your bid amount
  • The quality of your ad (including expected click-through rate, or eCTR)
  • Ad relevance
  • Landing page experience
  • The impact of ad extensions

So, if your ad gets more clicks relative to impressions, that signals to Google a high expected CTR, which is a key component of Ad Rank.

Result:
Your ad may appear in a higher position, even if your bid is lower than your competitors.

❌ Why the Other Options Are Incorrect:

OptionWhy Incorrect
The ad’s quality could reduce cost-per-click by at least 40%.❌ While better quality can lower CPC, the 40% figure is arbitrary and not guaranteed. The percentage depends on auction dynamics and competitors.
The advertiser could receive more bids in the auction.❌ Advertisers place bids — not receive them. This statement doesn’t apply to how Google Ads auctions work.
The ad could lead to a higher cost-per-click for the advertiser.❌ Actually, a higher eCTR and better quality can lower CPC, not increase it — unless competition is extremely high.

Real-Life Example:

Let’s say your agency writes an ad that says:

“Affordable Same-Day Flower Delivery | Free Vase With Every Order”

It gets clicked far more often than competitors’ ads.

➡ Google recognizes this high engagement, assumes it’s a relevant and valuable ad, and boosts your Ad Rank, possibly allowing you to win top positions at a lower bid.

Summary:

StatementCorrect?Why?
✅ Higher eCTR = higher Ad RankYesCTR is a core factor in the Ad Rank formula
❌ Reduces CPC by 40%NoQuality affects CPC, but there’s no fixed discount %
❌ Receives more bidsNoYou place bids, not receive them in Google Ads
❌ Leads to higher CPCNoHigher ad quality often leads to lower, not higher CPC

Additional Resources:

Conclusion:

If your ad is getting more clicks than average, it signals to Google that your ad is:

  • Engaging
  • Relevant
  • Likely to satisfy the searcher

➡ This boosts your expected CTR, which increases your Ad Rank — meaning better ad placement, possibly at a lower cost.

FAQs:

Q: Can my Ad Rank go up even with a low bid?
A: Yes — a high Quality Score (including eCTR) can boost your Ad Rank and lower your CPC.

Q: What’s considered a “good” CTR?
A: It varies by industry, but typically above 5% for branded terms and 2–4% for generic terms is solid.

Q: Is Ad Rank the same as Quality Score?
A: No. Quality Score is a diagnostic tool; Ad Rank is what determines your ad position in real time.

Now, if you are ready, then you take the Google Skillshop test for the Google Ads Search Exam. If you want more questions about the Google Ads Search Certification Exam, follow.