What is the Most important Factor?

LucidMarketing said:

Your ad's rank is your bid times your QS. Your actual CPC is also based on your QS and that of the next competitor. The basic formula is: next competitor's CPC * their QS / your QS.

Note that it's the next competitor's bid and QS. That changes all the time. But assuming things are static, your average QS means you'd have to bid at least twice as much to show above that competitor should his QS be 10. This is somewhat simplistic but that's the gist of it. Of course when that happens, you have a new competitor.

Biggest part of QS is relative CTR to your competitors. Therefore, better CTR = better QS. So the short answer to your question is QS. Always try to improve your QS and that means improving your ads to get higher click rates.

Having a better QS protects you from bidding more than needed and offers better protection should competitors increase their bid.

Budget is only the amount you wish to spend. It has nothing to do with how ads are ranked or how much you pay per click. It will affect of course if your ad does show or not. If you have a budget that is a tenth of what you need to show for all your keywords' searches, you will only show one out of ten times.

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