The Google Ads auction determines the ad rank and cost-per-click (CPC) of an advertisement. Ad rank is determined by the combination of an advertiser’s bid and the quality score of their ad, website, and landing page. The higher the ad rank, the higher the ad will appear on the page and the lower the CPC will be. Quality score is determined by the relevance and usefulness of the ad and landing page to the user, as well as the user experience on the website.
Here’s how the auction works:
Advertisers create campaigns and bid on specific keywords that they want their ads to show for.
When a user searches for a keyword that an advertiser has bid on, Google matches the keyword to the relevant ad groups and determines the relevance and quality of each ad.
The ad with the highest ad rank is displayed at the top of the page, followed by the ad with the second-highest ad rank, and so on.
The advertiser is charged their bid amount every time a user clicks on their ad.
Overall, the goal of the Google Ads algorithm is to show the most relevant and useful ads to users, while also maximizing the revenue for Google.
