An ad that gets a high number of clicks relative to the number of impressions can impact the Google Ads auction by potentially leading to a higher Ad Rank.
- The ad could increase the cost-per-click for the advertiser.
- The ad could help the advertiser receive more bids in the auction.
- The ad quality could lower cost-per-click by 40% or more.
- The ad click-through rate could lead to a higher Ad Rank.
The correct answer is: The ad click-through rate could lead to a higher Ad Rank
Explanation: Ad Rank determines the placement of ads in the auction and is influenced by several factors, including the click-through rate (CTR). A high CTR indicates that users find the ad relevant and useful, which Google interprets as a sign of ad quality. This can improve the expected CTR component of Ad Rank, potentially resulting in better ad placement and more favorable auction outcomes. This mechanism encourages advertisers to create engaging and relevant ads.
Chapter 4: Get to Know the Google Ads Auction
Read more here: https://support.google.com/google-ads/answer/2615875