You can win a higher ad position in the auction with a lower cost-per-click (CPC) bid by:
- Creating ads that include terms or phrases people are searching for
- Creating relevant ads and keywords, but not using ad extensions
- Creating ads that link to a generic landing page
- Creating high-quality ads and landing page/ creating relevant keywords and ads, and using ad extensions
The correct answer is:
- Creating relevant keywords and ads, and using ad extensions
Read More: https://support.google.com/google-ads/answer/6300?hl=en
It is right, that your ad can achieve a higher rank in the auction with a lower Cost-per-click(CPC). But to do that you have to understand that how it works.
There is a formula that helps you calculate the ad position for any particular ad. This formula is called ad Rank.
In Ad Rank, there are scores that determine the position of the ads, and the scores are given on the basis of these factors:
- Your bid
- The quality of your ad
- Landing page
- The ad Rand thresholds
- The context of the person’s search
- The expected impact of extensions
- Other ad factors
This is why you can rank higher at a low price even if your competitor bid more than you.