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Understanding the AdWords Auction

By on Nov 4, 2014 in AdWords | 0 comments

Did you know that every time a search runs¬†on Google.com an instant auction takes place to decide whose advertisements show and where they show on the page? This is one of the fundamental parts of the AdWords system. It only takes milliseconds to happen and it helps display the most relevant information to searchers every time they run a new search query. This gives advertisers ability to adjust their ads, keywords and campaign settings and begin to see immediate results. It also allows Google users the opportunity to find the information that is most important to them at the time of the search. This is critical to always display great content depending on where you are when you search, what time of the year it is (seasonal searches) and most importantly what you are searching for. The ad auction takes into consideration many different criterion that together allow Google to decide what a person is looking for and produce timely and relevant information to display to them. How Does Google’s Ad Auction Choose Which Ads To Display? To completely understand the ad auction, you must understand the factors used to choose which ad is relevant and thus, which will be displayed and in what order on the results page. The main factors Google uses to choose which ads show higher on search engine results pages do include the maximum cost per click chosen by the advertiser, but it does not stop there. The other factors are described in detail below. The overall ad rank is decided by all of these¬†three factors; bid, quality and format impact. In many cases an ad that ranks well for these factors can beat a higher dollar amount bid and actually display more prominently on page. Remember, the auction is running each time a search query is run. If you have a low ad rank, it can be fixed to bring your ads to more visible positions if you make the necessary changes. Google’s Chief Economist Explains AdWords Auction Here is a video straight from Google and Hal Varian (Google’s Cheif Economist) that further explains the ins and outs of the ad auction. There are many small factors but understanding the main parts of...

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