Question: Which best describes the relationship between maximum cost-per-click (max. CPC) bids and ad rank?
- A CPC bid only affects Ad Rank on the Search Network.
- An increased CPC bid leads directly to a small increase in Ad Rank.
- A CPC bid is one factor that affects Ad Rank. ✓
- An increased CPC bid leads directly to a large increase in Ad Rank.
Correct Answer: A CPC bid is one factor that affects Ad Rank
Explanation: A CPC bid is one factor that affects Ad Rank and this describes the best relationship between maximum cost per click bids and ad rank. Hence, the primary component of your Ad rank is your bids and the quality of your website and ads.
On the other hand, Google incorporates the expected impact from other ad formats and also from your extensions when computing your Ad Rank. So, it does not matter at all if your competitors have higher bids than yours and you can still win a higher position at a lower price by using extensions, ads, and highly relevant keywords.
How To Determine Your Maximum CPC In Google Ads?
If you want more control over your Google Ads account, you should consider setting maximum cost per click (CPC) for your keywords and keyword groups. However, for those users who are not willing to set their cost per click amount manually, Google Ads offers automatic bidding.
So, now if you are willing to determine your maximum CPC in Google Ads can follow the below steps.
i). Modify your maximum CPC clicks based on your ads’ performance. In the setting, you can adjust the maximum cost per click amounts accordingly. Doing this will help you to earn more profit by getting qualified traffic to your website.
ii). Look at Google’s traffic estimator for the maximum cost per click rates for your different keywords. This will deliver you good profits in the long run.
iii). To discover your maximum cost per click, you need to multiple your maximum cost per click.
iv). Determine your conversion rate for the suitable keyword or keyword group. However, this must have become easy if you have been selling services or products for a while now.
v). Another most vital part that you need to consider is setting your prices accordingly. You can use maximum cost per conversion, desired profit margin, and other figures that match your product prices.
vi). Determine the amount you are willing to spend for each conversion tied to a specific keyword.
vi). Determine your desired profit margin for each corresponding sale or sales lead.
The Final Thoughts
‘A CPC bid is one factor that affects Ad Rank’ is the answer to your question ‘Which best describes the relationship between maximum cost-per-click (max. CPC) bids and ad rank? Therefore, this is all about CPC bids and how to maximize the same in Google Ads.