How Google Ad Auction Works
This is part 2 a Google Ad Action. Find out how Google Ad Action works. In our examples, we refer to the Google Ad Auction. In Google, every time someone searches on Google, or visits a site that shows ads, Google Ads determines which ads should show using a lightning-fast ad auction. This Google Ad auction will determine which ads show up for that particular search. If the keyword you are searching, is one of your targeted terms, you enter the auction.
The 3 Main Factors for Good Results in Google Ads Auction.
- Your bid (CPC). When setting your bid, you’re telling Google the maximum amount you’re willing to pay to have someone click on your ad. Often, the actual price you pay will be less than the amount you’ve set. Tip – you can change your bid any time.
- Quality Score. The quality of your ad is important. Google looks at how relevant your ad is in relation to the website or landing page that ad links to. Goggle enables you to monitor and improve your quality score. Google wants its ads to high quality and relevant. Google will learn to trust you, and the more Google trusts you, the less you pay. Note: Ad space doesn’t just go to the highest bidder.
- Ad Extensions*. When creating your ad you have options to include additional information in your ad. This can include a phone number or multiple links within your website. There are called ad extensions. The impact your ad performance has, will be estimated by Google Ads. Tip – your competition may have a higher bid than yours, but you have the ability to still win a higher position, at a lower price, by using extensions, ads, and highly relevant keywords. *Source Google.
Also, Google calculates which ads will be displayed and in which order. Google calls this Ad Rank. Highest bid + quality score = Ad Rank.
*For more detailed information regarding the Ad Auction and how it works see: Ad Rank Threshold.
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