The main principles of ad auction in Adwords

As you know, Google Adwords uses ad auction, in order to sort down all of the advertisement links, belonging to the advertisers. This allows showing all of the sponsored links to a person, who searches anything in Google. As you can imagine, anyone who purchases Google ads, wants his link to be listed on the top of the SERP. It is obviously the premium place that provides the highest volume of traffic. So, how can you get to the top of the SERP with your ads?

Well, the obvious answer is: you should pay more than your competitors. The one, who sets the highest price, gets all the traffic. It looks simple and fair. But another problem arises. If Google Adwords used the price as the only criteria to sort the sponsored links, the end users would saw not so relevant and sometimes – even low-quality ads. Google can’t let it happen, so it uses another criterion in its ad auction – the quality of the ads, its relevance. Such parameter, as a ‘Quality score’ is used for this.

The name of this parameter speaks for itself: it indicated the quality of the ads, which is analyzed. How relevant it is, how good its landing is, etc. These factors influence the results of the ad auction, which is held by Adwords. As a result, not only the most expensive ads is shown, but also the one with the highest quality. It’s the core principle of Adwords: it filters the sponsored links due to several parameters, combining them together.

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