Karen’s washing machine broke, so she’s conducting a search on Google to find a new one. She sees a number of Google Search Ads for washing machines in the results.
- Ad relevance
- Advertiser bid
Google Ads uses an auction system to rank the ads that appear on the search results page, and to determine the cost for each ad click. First and foremost, Google users want ads they see to be relevant. Users don’t want to be bothered with ads that aren’t closely related to what they’re searching for.
Google uses a special version of a second-price auction that takes into account more than just bids—more on that later. In a standard second-price auction based only on bids, the advertiser doesn’t have to pay their full bid.