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Monday, February 26, 2024

Do You Know How the Google Ads Auction Works?

Every day, Google receives 3.5 billion searches, and on an average, about 84 percent of individuals use Google at least thrice a day to seek information.

When a user enters a query on Google Search Engine, Google Ads conducts a brief auction to select which ads will appear for that query and where they should appear. Every time an ad is eligible to surface for a search phrase out of the billions of questions enter each day, this ad auction is repeated. This post will clearly tell you how the whole process of Google Ad Auctions works.

Google uses a metric called Ad Rank to evaluate whether an ad is suitable to appear in the Google search results and where it will appear. It will not be display in adverts that do not match the Ad Rank requirements. Ad Rank is also responsible for determining the cost-per-click (CPC) advertisers pay for their ads. 

The Process

When a user enters a search query, Google Ads conducts a split-second auction of all ads that include keywords related to the search. It will define which advertisements are eligible to be display, their ad position in comparison to competing adverts, and the cost-per-click (CPC) that the advertisers will pay for a click on their ad.

Advertisers select keywords they wish to bid on and set their maximum CPC bid when starting Google Ads pay-per-click (PPC) promoting campaigns. The advertiser also generates keyword-based ad groupings and related advertising.

The Google Ads auction commences when a user enters a query. The auction procedure follows the following steps. For each search query, 

  • Google Ads retrieves all the advertisements whose keywords are related to the search terms.
  • Advertisements that are ineligible for that search (also any ads that have been disapproved) are ignored by the system.
  • The Ad Rank of the remaining commercials is use to assess them. The maximum CPC price, Ad Rank thresholds, ad quality, the context of the search, and the formats and extensions used – all contribute to the Ad Rank.

The SERP displays the eligible advertisements that won the auction based on their Ad Rank.

About Ad Rank

For a pertinent search phrase, the ad with the highest Ad Rank will appear at the top of the SERP. The one with the second-highest Ad Rank comes next, and so on. Ads that do not fulfill the Ad Rank eligibility criteria will not find a place in Google’s search results.

Calculation of Ad Rank

Ad Rank is generated by multiply the maximum cost-per-click bid by the Quality Score. It also depends on several other factors like search context, the influence of ad extensions and formats, competitiveness of auction, and Ad Rand threshold. So, spending more money does not guarantee you the greatest Ad Rank!

What determines your Ad Rank?

CPC (cost-per-click) and the Quality Score are the two major factors that determine your Ad Rank.

Cost-per-click (CPC)

The amount you spend on each click for your adverts in pay-per-click (PPC) marketing campaigns is known as the cost-per-click (CPC).

  • You select the maximum CPC bid for the keywords in your profile when you create a Google Ads PPC campaign. 
  • The maximum CPC bid can be set at the keyword or ad group level.
  • The max CPC is the most you’re ready to spend for a click on your advertisements.
  • The final amount you’ll be charg for a click on your ad is the real CPC. Your actual CPC is calculated at the bidd time and may be lower than the maximum CPC.
  • The average CPC is the price an advertiser is charg on average for a click.

Quality Score

A Quality Score is a diagnosis tool that determines how good your ad is with respect to other ads.

Ads and landing pages with a higher quality score are regard as more relevant and beneficial to the search query. It helps to guarantee that more relevant adverts appear higher up on the SERP.

This Quality Score again depends on –

Expected CTR

When an ad is display on Google Page, the predict CTR is an estimation of the ad click through rate. Expected CTR estimates are based on user CTR, which is use to determine which advertisements would perform best when display in response to a search query.

The CTR of your ad is the number of clicks divid by the total number of times it is shown. 

Experience with landing pages

The applicability and effectiveness of your website land page to the person who click on the ad is determin by the landing page experience.

Relevance of the advertisement

The relevancy of your ad is determine by how well it fits the user’s search intent. It guarantees that only the most relevant advertisements are display for each search query, and the adverts that are irrelevant to the product or service are not display. Three categories are used to portray the quality score –

  • Above Average
  • Average
  • Below Average 

In addition to the three elements listed above, Google evaluates other factors such as the device type of the user, the user’s location, the time of day, the influence of ad extensions, and many more during the real-time auction.

Checking your Quality Score in Google Ads

To verify Quality Score, Google Ads gives four status columns at the keyword level:

  • Quality score rating
  • Landing page experience
  • Expected CTR
  • Ad Relevance

To find out what your Quality Score is in your Google Ads account, follow the steps below:

1. Go to your Google Ads account and sign in.

2. In the left menu, select “Keywords.”

3. In the top right corner of the table, click the “Columns” icon.

4. Scroll down to the Quality Score area and click “Modify columns for keywords.” To your table metrics, add the following elements.

  • Expected CTR
  • Landing page experience
  • Quality score rating
  • Ad Relevance

5. Press the Apply button.

6. After these columns have been add, verify the Quality Score and its mechanism by scrolling to the right on each term in the table.

7. If the Quality Score column has a “-,” it signifies that there are inadequate searches that match your keywords to establish the Quality Score for that phrase.

Conclusion

The Google Ads auction is an auction that is initiat by every Google search to select which ads will be display for that search term and in what position. The Ad Rank and Quality Score of advertising are key criteria in the ad auction since they assist determine whether or not an ad is qualified to appear on Google. You may increase the eligibility and rank of your advertising by enhancing the various components of Ad Rank and Quality Score.

Jaxson henry
Jaxson henry
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