How does Ad Rank affect cost per click (CPC)?

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. Your Quality Score depends on multiple factors, including: Your click-through rate (CTR). The relevance of each keyword to its ad group.

In the search network, ads that appear above in the search results generally have a higher CPC than those that appear below in the results. 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.

Ad rank refers to the position that your ad occupies on a given paid search results page. If your ad shows up second, your ad rank for that given search is number two. Ad rank is a value that determines your ad position and if your ad will show up at all for a search.

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