Ad Rank thresholds: Definition
The minimum bid necessary for your ad to show in a particular position. To help maintain a high quality ad experience, every ad must meet the relevant quality thresholds to be eligible to show.
Ad Rank is determined by a combination of factors, including your bid, auction-time ad quality, the Ad Rank thresholds, the context of the search and the impact of ad extensions.
Ad Rank thresholds are determined by your ad quality and are adjusted based on various factors, including ad position, the topic and nature of the search and user signals and attributes such as location and device type. Ad Rank thresholds help ensure that the right consideration is given to ad quality as well as an advertiser’s bid and value.
For example, the Ad Rank thresholds that ads must meet to show above search results are higher than the thresholds for ads below search results. That way people are more likely to see higher quality ads higher on the page, and actual CPCs reflect the value of the ad’s location on the page.
How Ad Rank affects your CPC
Your actual CPC is calculated based on your Ad Rank, competition from other advertisers and the Ad Rank thresholds that your ad must meet.
Even if your ad is the only one that’s eligible to show, and none of your competitors meet the Ad Rank thresholds, you’ll still pay the minimum needed to exceed the thresholds. This means that depending on your ad quality and Ad Rank thresholds your ad could be relatively expensive, even when no ads show immediately below it.