Google has updated its "How the Google Ads auction works" page to clarify that it conducts separate auctions for each ad location. The new addition states that top ads are selected through a different auction than ads in other locations, allowing ads to appear multiple times across different locations but only once in a single location.
Ad Auction Process
The Google Ads auction occurs every time a user searches on Google or visits a site displaying ads. The auction determines which ads are shown based on several factors:
Your Bid: This is the maximum amount you're willing to pay for a click. Actual payment may be less, and bids can be adjusted anytime.
Quality of Ads and Landing Page: Google evaluates the relevance and usefulness of your ad and landing page, including user expectations and navigation ease, summarized in a Quality Score available in your Google Ads account.
Expected Impact from Ad Assets: Additional information in your ad, like phone numbers or links, can enhance performance. Relevant keywords and assets can help achieve higher ad positions at lower costs, even against higher bids.
Ad Rank Thresholds: Minimum quality thresholds are set to ensure that only high-quality ads appear in specific positions.
Context of Your Ad: Factors such as search terms, user location, device type, time of search, and other ads influence Ad Rank.
Competitiveness of an Auction: Ads with similar ranks have equal chances of winning a position, but a significant rank gap increases the likelihood of the higher-ranking ad winning, potentially at a higher cost per click.
These six factors collectively determine the visibility of ads to potential customers.
