Dario Zannoni found this new documentation in the Google Ads auction docs called “the competitiveness of an auction,”.
It suggests that if an ad’s rank significantly exceeds its competitors’, it might incur a higher cost per click due to the increased certainty of winning.
This departure from the expected bidding dynamics prompts questions about its prevalence and impact on ad auctions.
The factor has been documented in older help documents, and the updated help article provides further insights into this aspect of the auction process.