Ad Auction
The real-time process search engines use to determine which ads appear for a given query and in what order.
Full definition
Every time a user searches on Google, a near-instantaneous ad auction takes place to determine which ads appear and in which positions. The auction considers: your bid (maximum CPC you're willing to pay), Quality Score (relevance of your ad and landing page), and Ad Rank (the combined metric determining position). Critically, Ad Rank means you don't always need the highest bid to appear in the top position — highly relevant ads with strong Quality Scores can outperform higher bids. The auction runs trillions of times per day and is completed in milliseconds before the search results page loads.
Real-world example
Advertiser A bids $5 but has a Quality Score of 10; Advertiser B bids $8 but has a Quality Score of 4. Advertiser A wins the higher position with a lower actual CPC.
Related terms
Google's system for determining the position and eligibility of ads in search results, based on bid, Quality Score, and other factors.
Read definitionGoogle Ads' 1–10 rating for each keyword reflecting the expected relevance of your ad and landing page to a user's search.
Read definitionThe amount an advertiser pays each time a user clicks on their ad.
Read definitionThe percentage of users who click on an ad or link after seeing it, calculated as clicks divided by impressions.
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