Google Ads auction system - how does it work?
Google Ads auction system – how does it work?
Google Ads allows you to advertise your business on Google’s search engine and on other Google partner sites and applications. One of the most important elements of the Google Ads system is the ad auction, which determines which ads will be displayed and in what order. In this article, I take a closer look at how the auction system in Google Ads works.
Table of Contents
Operation of the Google Ads auction system
The auction system in Google Ads works by automatically processing advertising bids. Each ad auction begins when a user enters a query into Google’s search engine. Google then checks which ads match the entered query and runs an ad auction.
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During a Google Ads auction, the system evaluates a number of factors to determine which ads will be displayed and in what order – not all ads that pass verification will participate in the auction, only those that meet certain criteria.
Quality rating is one of the most important factors that affect which ads will be displayed and in what order. Quality rating is an indicator that Google Ads assigns to each ad. It consists of several elements, such as the quality of ad content, keyword relevance, landing page quality, click-through rate and other user experience factors.
Bid price is another important factor that affects which ads will be displayed and in what order. The bid price is the amount an advertiser is willing to pay for a click on his ad. This value is determined individually by each advertiser.
After evaluating the quality and setting the bid price, Google Ads calculates the auction score for each ad. The result of the auction determines the position of the ad in Google’s search results and on other Google partner sites and applications.
Ads that get higher auction results tend to rank higher in search results. However, it is worth noting that the ad with the highest auction score will not always be displayed first, as many factors can affect which ads are displayed at any given time. For example, if a user is searching for information about a particular product, an ad that is more relevant and will get the user to click on it may be displayed before an ad with a higher listing score.
What is the cost per click?
Cost per click is the amount an advertiser will pay for each click on its ad. This value is determined individually by each advertiser and depends on the competitiveness of the market and other factors. The cost per click can vary depending on the keywords the ad is targeting.
It is worth noting that the cost per click is not the only factor that affects the outcome of the auction and the position of the ad in search results. An ad with a higher quality rating and more relevant keywords can get a higher listing score and rank higher in search results, even if its cost per click is lower.
Summary – Google Ads auction system
An ad auction in Google Ads is the process of automatically processing ad bids, which determines which ads will be displayed and in what order. It is the auction system in Google Ads that ensures that ads are displayed only to users who are interested in the products or services in question, and advertisers have a chance to effectively advertise their business.
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I have been active in Google Ads, SEO and e-commerce for almost 10 years. Now I share my knowledge and experience on the blog, on social media and in courses, audits and training sessions.
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