- The AdWords auction determines the position of ads based on the advertiser's maximum cost-per-click bid (Max CPC) and Quality Score. A higher Quality Score and competitive bid can result in a higher ad position even with a lower bid. - Quality Score is a measure of how relevant, useful, and providing of a good user experience an ad and landing page are based on click-through rate, relevancy of keywords and ads to searches, and landing page quality. - In the example given, Scott's ad would show in first position because it had the highest Quality Score and competitive Max CPC bid, even though Alison and Jon bid higher amounts. Actual cost-per-click