Do you want to be the first result every time someone does a Google search? For that you must understand how Google Ads auctions work. Because it's not enough to just set a bid or be the highest bid, you have to meet different requirements for Google to consider you the best option for the user.

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If you don't know how auctions work, here I tell you everything:

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What are Google auctions?

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They are the process that determines which ads are shown in Google search results and in what order. These auctions take place in real time, every time someone performs a search.

To participate in a Google Ads auction, advertisers must create Google Ads campaigns and bid on keywords relevant to their business. A bidding strategy indicates how much you will pay for each action related to your ad. It will depend on your campaign objective, budget and other factors such as market research.. The highest bid does not always win the auction, as the relevance of the ad to the search is also taken into account.

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If you want to know more about bid types, I invite you to read this blog where I talk about bid types and how to select the most suitable for your ecommerce: https://www.felixmedia.ai/blog/master-bidding-strategies-to-boost-your-e-commerce

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How does Google decide which ads to show in its search results?

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Every time someone performs a search on Google, the platform conducts an ad auction to determine which ads will be displayed and in what order. This auction is ultra-fast and takes place in milliseconds.

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Ads that are not relevant to the search are not shown, for example, if it is targeted to another country or violates any Google regulations. Once irrelevant ads have been discarded, the ranking of the ad is used to determine its position in the search results. The ad ranking is calculated by taking into account factors such as the relevance of the ad, the advertiser's bid and other aspects that we will see below:

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The 5 key factors in Google Auctions.

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1. The advertiser's bid:

This is the maximum amount the advertiser is willing to pay per click on your ad. This amount can be changed at any time during your campaign.

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2. Quality:

Takes into account the relevance and usefulness that both the ads and the landing page have. You can review the evaluation of your site in your Google Ads account.

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3. Competitiveness of an auction:

That is, if two ads are competing for the same position and have similar ad rankings, each will have a similar chance of winning that position. As the gap in ad ranking grows between two advertisers' ads, the ad whose ranking is higher is more likely to win, but may also pay a higher cost-per-click to be more certain of winning.

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4. The relevance of the ad to the search:This refers to the context of the search, such as terms used, location, device type, time the search was performed, as well as other user attributes.

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5. Resources:When you create an ad, you have the option to add additional information to it, such as a phone number or more links to specific pages on your site. This data is called ad assets. Google Ads estimates the impact that resources and other ad formats will have on your ad's performance, so be sure to always add resources that can add value to your ad and make it more likely that users will take an action.

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Final Tips

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In general, ads with higher bidding, higher relevancy and higher quality are more likely to appear at the top of search results. Here are some tips for doing so:

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Optimize your bid:

• Define your goals and set a bid that allows you to achieve them.
• Use the Google Ads tool to make sure your site is of quality
• Test different types of bids to see what works best for your campaign.

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Optimize your relevance and quality:

• Choose the most appropriate keywords for your ecommerce
• Create ads that are attractive and relevant to users
• Use images and videos to improve the relevancy of your ads
• Make sure your landing page is easy to use and has a good design. If you want more tips on this point, you can watch our video on how to increase conversions on your website: https://youtu.be/9TLcQBA9s8I

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By following these tips, you will be able to improve your ad ranking and show your ads to more users with more potential to generate conversions.

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In this blog we have learned that Google Ads auctions are a complex process that takes into account several factors. The advertiser's bid is important, but it is not the only factor that determines the ad's ranking.

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If you need help managing your marketing campaign strategy, schedule your free consultation with Felix Media by clicking on the button at the top right of the page. We will be happy to answer your questions and help you create a strategy that will take your ecommerce to the next level.

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And, if you want to receive more information about how to boost your online store, follow us on our social networks where we constantly upload tips, tutorials and news from the world of digital marketing.