This is how the Google Ads Auction works.

Cost Per Click (CPC).

The average CPC (cost per click) is often not the price you pay for each click. The system is dynamic and may vary depending on your Ad rank. Ads of higher quality tend to cost less, get better positions and generate more success. If users see better ads, they are more likely to click on them.

Your ad rank is determined in part by:

• Ad format and extensions
• CTR (click through rate)
• Context of Query

Quality Score

Quality Score is an assessment of the quality of your ads, keywords and landing pages. A higher quality score can provide lower costs and better ad positions. Quality Score consists of:

• the expected click through rate
• ad relevance
• landing page experience

Ways you can improve your clickthrough rate are:

• Be specific in your add by adding keywords in your ad text (headline).
• Experiment with different “calls to action.” (Free shipping / free returns / Call now / Book now)
• Create time- or location-based ad texts (seasonal, vacation, special events, specific locations)

Ways you can improve Ad relevance include:

• Add negative keywords
• Be specific on mobile: test mobile experiences
• Be local: target the correct region and use relevant language
• Make sure your ad copy contains relevant search terms

Ways you can improve the landing page experience include:

• Drive traffic to the right landing page that specifically answers the customer question
• Be consistent: the page should continue what the ad has promised the customer
• Transparency and trust: Be clear regarding who you are and what your business does. If you ask for personal info, explain why.
• Improve loading speed and clarity.
• Think again about mobile; especially regarding mobile navigation.