Google Ads uses a real-time auction to determine which ads are displayed on the Google Search and Display Networks and in what order they are displayed.
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Here’s how the Google Ads auction process works:
- Advertisers create ads and bid on keywords that they think will be used by potential customers when searching for their products or services.
- When a user performs a search on Google, the search engine looks for ads that are relevant to the user’s search and displays them on the search results page.
- Google determines the relevance and quality of each ad by evaluating the ad’s text, the landing page it links to, and other factors.
- Google also considers the bid amount that the advertiser is willing to pay for each click on their ad, as well as the ad’s expected click-through rate (CTR) and the overall quality of the advertiser’s account.
- Based on all of these factors, Google assigns each ad a Quality Score, which is a measure of the ad’s relevance and quality.
- Google then uses the Quality Score and bid amount to determine the ad’s Ad Rank, which is the position that the ad will be displayed on the search results page.
- Ads with higher Ad Rank will be displayed higher on the search results page and may be more likely to receive clicks from users.
- The process of determining which ads are displayed and in what order is conducted in real-time, meaning that it occurs every time a user performs a search. This ensures that the ads being displayed are the most relevant and highest quality for the user at that moment.