Pay-per-click marketing is an advertising channel where marketers don’t pay by the impression or purely for ad placement. The bid amount may affect placement, but the advertiser only pays when their ad is clicked by an online user.
The most common PPC ad format appears on search results pages of search engines like Google or Bing. Advertisers have the opportunity to place their brand, product, or service front and center in the form of an ad that targets a specific keyword or behavior.
Ad Rank is calculated using your bid amount, your auction-time ad quality (including expected clickthrough rate, ad relevance, and landing page experience), the Ad Rank thresholds, the context of the person’s search (for example, the person’s location, device, time of search, the nature of the search terms, the other ads and search results that show on the page, and other user signals and attributes), and the expected impact of extensions and other ad formats.
Your Ad Rank is recalculated each time your ad is eligible to appear and competes in an auction, so your ad position can fluctuate each time depending on your competition, the context of the person’s search, and your quality at that moment.
HOW IT WORKS
Your Quality Ranking is determined by how relevant your landing page is in relation to the search term. If we are searching for "Best Hamburger Restaurant", and you are sending people to your Hotdog site, your quality ranking will be much lower than your competition, and will negatively impact your likelihood of winning your bid.