CTR is not just an indication of how relevant your ads are to searchers. CTR also contributes to your Ad Rank in the search engines. Ad rank determines the position of your ad on the search results page.
The top position doesn’t go to the highest bidder. It goes to the advertiser with the highest Ad Rank. And CTR is a huge factor in the Ad Rank formula.
But Ad Rank is even more complicated than that. Google measures your actual CTR against an expected CTR. If you’ve run a lot of ads with a low CTR, Google will assume that any new ads you add to your Google Ads account are also going to have a low CTR, and may rank them lower on the page. It’s so important to understand the CTR on your ads and to try to improve it as much as possible. A poor CTR can lead to low ad positions, no matter how much you bid.