We’ve discussed how your quality score can affect your ad rank and CPC, but here is an example of quality score in action.
First, let’s say that we have five advertisers all bidding for the same keyword. Take a good look at the following image. You can see each advertiser’s quality score and keyword bid.
You’ll notice that the highest-ranked advertiser, Advertiser E, doesn’t have the highest keyword bid but does have the highest quality score. This high quality score allows Advertiser E to earn a top spot even without the highest bid. Take a look at Advertiser A, on the bottom. They have the lowest quality score but the highest bid. Simply bidding higher hasn’t overcome the negative impact of their low quality score. To achieve a higher ad rank, Advertiser A will need to either
raise their bid substantially or write a more relevant ad for their keywords. This is how the ad rank formula works.
Good quality scores will lead to higher rankings, lower CPCs, and a better ROI for your PPC campaign.