Pay per click (PPC) adverts are ranked according to certain criteria set by the PPC search engines. Google does the same with its ads. It has a ranking algorithm that determines the ranking and placement of an advert in the PPC listing.

PPC Adverts? Ranking Algorithm

Adverts are ranked based on two main factors: cost per click (CPC) and click through rate (CTR). Cost per click refers to the amount that an advertiser pays for every click that the ad receives. Click through rate, on the other hand, refers to the clicks that an ad receives.

Cost per click and click through rate determine the ad?s quality score for a particular keyword or search term. PPC search engines use these factors to decide whether an ad should be placed on the top of the PPC list. Higher CPC and CTR contribute to the high ranking of an advert.