Google AdWords allows for advertisers to bid on keywords that trigger clickable ads in Google ‘s search results. Within AdWords is the Ad Rank, which determines the noticeability of your ads and cost-per-click.

How is the Ad position determined during the ad auction-bidding process?

For every query, an Ad Rank is calculated with the formula: quality score multiplied by the CPC bid. Keywords with the highest quality score have the advantage over others with lower quality scores. Focus on getting the highest quality score possible.

Here are some tips to increase quality score and pay less for them, 

First and foremost have a landing page that’s user friendly. Nothing is more disappointing then clicking to a low quality page. People come for the content, so make it attractive and easy for them to use.

Maintain keywords that are relevant, read the query reports to see which keywords are still relevant.

Don’t use keywords that are low performing or are hyper-broad. Use high performing keywords. Though don’t bank only on high performing keywords, balance them out. The campaign can still generate high ROI.

Pull in higher CTR (Click Through Rate) by modifying ads based on effectiveness. Don’t moderate based on only on CTR, also consider conversion rates.

Most importantly, test continuously!