Skip to main content

Google Ads Study Note: Five Key AdWords Auction Insights

Google is the largest search engine in the world. It builds a very close relationship between advertisers and users. Users come to Google, then type their questions on the search box, and try to find good answers. 

 From a business perspective, Google wants users to come back and continue to use Google as their first or only search engine. Therefore, Google needs to have the auction for those ads and to make sure the ads are relevant to what users search for. By delivering relevant ads, Google will earn trust and credibility from users.

 The course instructor Isaac shares five key insights of AdWords auction:

 #1: Always need to focus on relevancy

Google's job is to send users to the most relevant landing page that contains the most useful information to answer their questions. Google really cares a lot about the user experiences with those ads.

There are two subcategories regarding relevancy: 
  • The first is the ad text. Google wants to make sure what your ad content is really relevant to what the users looking for. 
  • The second is the landing page. Make sure your landing page is relevant to the search terms. Google will check how relevant is your content, how clear is your site, how well is your site laid out, and etc. All Google wants is to deliver a positive user experience to users.

#2: Google uses "second price" auction model

The "second price" auction model means that you only need to pay the amount at the advertiser below you. In most cases, advertisers only need to pay as much as they need to beat the other advertisers below them.

#3: You only pay for click

The impression doesn't cost money. Your ad may be shown a thousand times per day, but if no one clicks (what a sad), you won't get charged. You only pay when someone clicks your ad and visit the page.

#4: Every single search triggers another auction

Every single time a query is entered into Google, there is another live auction. Your quality score might change, the competitive landscape might change. That affects how much you have to pay for a click and also affects your average ad position.

#5: Max CPC Bids equal to the MOST you are willing to pay for a click

Google won't charge your max CPC all the time. You may and you would like to pay less when the bidding is not competitive, but you are not paying more than your maximum CPC. The max CPC bid is not necessarily what you are going to pay. It is the most you are willing to pay. Sometimes, a higher position does not mean you get a higher cost per click. 
Labels:

Comments

  1. paul smithMay 6, 2025 at 6:00 AM

    Google Ads' auction insights emphasize relevancy, cost-per-click, and the dynamic nature of each auction. Understanding this Atmosphere Switch in bidding strategies can help advertisers optimize ad performance and improve ROI.

    ReplyDelete

Post a Comment

Popular posts from this blog

Starbucks: Three Main Benefits For Writing Customer Name On The Cup

Whenever I order a small Starbucks coffee, I am always asked "What's your first name?" by a cashier. Even I was the only person to order, they still asked my name. Not only Starbucks, now many other bubble tea brands such as Vivi, Coco, Gong Tea also start calling customer's names. Why does Starbucks write customer name on the cup? What're the benefits to do that? Image from writingelves.com Self-Promotion In the beginning, Starbucks wrote customer names because they received too many orders. Marking down names would prevent mistakes. Later on, Starbucks found that writing names do not only improve work efficiency but also increase brand awareness.   Sometimes (most times) Starbucks spell the wrong name. You think customers will get angry? Actually no. In contrast, people feel Starbucks is not only a coffee shop but also a coffee shop with its own personality.  Image From Memeguy Some customers also make fun with Starbucks. They come up with...
11 comments
Read more

Five Useful Tips for Creating Effective Google Adwords Campaign

Google Ads is one of the most effective ways to deliver quick and desirable business results. In order to get a better performance than competitors', it is very important for marketers to make the most relevant ads to meet customers' needs and help them to select the best search choice(s).  Tip One: Decide your campaign goals Depends on your business type and grow stage, you need to have a clear goal before launching any campaign. Having a clear goal will help you select the most relevant ad format(s) and Google Network(s) to show your ads and also reach potential target customers effectively. There are three common goals for advertisers: Driving website traffic Increasing brand awareness Boosting sales (driving leads) Different goals will require creating relevant ad formats in different networks. Google Adwords has two main networks to show your ads: Search Network Your ads can appear throughout sites on the Google Search Network. If you want to re...
15 comments
Read more

Digital Campaign Case Study: How Does Coca-Cola “Taste the Feeling”Make Every Moment Special?

Coca-Cola is one of the highest recognition brands globally. Almost everyone in the world knows Coca-Cola and has drunk it. The unique taste of Coke is unforgettable, and that’s why so many people love it. Why does Coke so unforgettable? The taste and refreshment of Coke? Of course, it is one of the key reason.  The other reason is its brand creative marketing message.  Coca-Cola company have been creating different marketing campaign across the world every year to reinforce the brand culture. Coke is not a simple product anymore.  It is our lifestyle! In the January of 2016,  Coca-Cola launched new marketing campaign called “Taste The Feeling”. According to  Coca-Cola Stories , the central message of “Taste The Feeling” is to “bring the idea that drinking a Coca-Cola is a simple pleasure that makes everyday moments more special.” (Jay Moye) This campaign message was distributed through different channels such as TV commercials, print, outdoor, in-store, ...
3 comments
Read more