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QualityScore, Ad Position and CPC: What and how they all are connected together

Do you wonder how Google Quality score work?
How about the relationship between QS, ad position, and cost per click?

It’s all explained in this short video by Google’s Chief Economist

Let me summarize it for you so you don’t have to watch the whole video again in case you forgot

What determines your Quality Score:

  • CTR (Click Through Rate) is the biggest component… if your ad doesn’t get click Google won’t make money.
  • Relevancy between the keyword and ad copy
  • Landing page quality:
    1. Relevant content
    2. Original content
    3. Easy navigation which consists of quick: load time, no pop up, pop unders
    4. Transparent of the nature of the business

You can watch it in minute 2:31

What is Ad Rank and how it determines your Ad position?
Here’s the formula for Ad Rank:

Max bid x quality score = ad rank


  • Max bid x quality score = ad rank
  • $4 x 1 = 4 <== The ad won’t even get shown up due to bad quality score
  • $3 x 3 = 9 <== Ad position 2
  • $2 x 6 = 12 <== Ad position 1
  • $1 x 8 = 8 <== Ad position 3

You can learn it in more detail at minute 4:17

Determining the Cost Per Click (CPC)

It’s rather complicated to explain it here, better watch it yourself.. he’ll explain it better and with example, just go to the minute 5:29