When people have a question that needs answering, their first stop is usually Google.
According to Moz, statistics show there are 3.5 billion searches on Google every day, and 84% of people use Google at least three times per day to search for information.
We can almost bet your business has the solution to some of those daily searches, which makes it understandable why businesses tussle to get to the top of that search engine results page (SERP).
Some industries are more competitive than others. In our own experience, we’ve seen businesses paying over £10 for a single click in some auctions. That figure might blow people away, but those businesses are clearly getting a return on their investment; otherwise, they wouldn’t be using Google Ads.
So how does the auction work? How exactly does Google decide who gets the number one spot on the search results page? Here’s our breakdown below.
Google Ads Auctions
When there is a search query, the Google Ads auction begins. Here is the auction process according to Google:
- For every search query, Google Ads finds all the ads whose keywords are relevant to the search terms.
- The system ignores ads not eligible for that location and any disapproved ads.
- The remaining ads will be evaluated based on their Ad Rank. The Ad Rank is based on the max CPC bid, ad quality, Ad Rank thresholds, search context and the ad extensions and formats used.
The eligible ads that won the auction are shown on the SERP based on their Ad Rank.
Ad Rank
The ad with the highest Ad Rank will be placed in the top position of the SERP for a relevant search term. This is followed by the ad with the second highest Ad Rank and so on. Ads that don’t meet the Ad Rank eligibility requirements will not be shown on Google.
Ad Rank = the bidder’s Maximum cost per click (CPC) Bid x Quality Score, which means the highest CPC bid doesn’t always guarantee the top spot.
As seen in the example, Advertiser 1 had a lower max CPC bid than the other three advertisers but was able to qualify for the top ad position because their quality score was high.
This is why it’s essential that you get the right guidance and support in creating Google Ads campaigns.
Google Ads Management
If you’d like to get started on Google Ads, or maybe you’ve already got campaigns active and want to improve your results, why not get in touch with us? GoClick Media is a digital marketing agency based in Newry and Armagh, Northern Ireland.
We’re happy to conduct audits of your accounts, set up video consultations or even meet you in person to ensure you get everything you need to help your business succeed.
