It is visible pre-click
Buyers compare prices in the results grid. A product priced above the visible field gets fewer clicks at the same bid — which reads as a CTR problem and is actually a pricing one.
It affects what you pay
Lower expected CTR means you bid more for the same position. Price and cost per click are connected in a way they are not on Search.
What to do if you cannot compete on price
- Bundle so the comparison is not like for like.
- Compete on shipping speed or returns, stated in the ad assets.
- Segment: accept lower share on commodity items, defend margin on differentiated ones.