How the AdWords Auction Works

It’s time to place your bid. Learn about the AdWords Auction!

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Questions this video answers:
  1. What is Ad Rank?
  2. When will my ads show at the top of Google's search results?
  3. How is the cost of my pay-per-click calculated?

Search advertising isn’t static. Every second of every day, new advertisers come into the market, looking to drive traffic to their website. With all the competition, search engines like Google have to figure out who’s ad to display and where. This means constant adjusting in placement and cost.


Watch our video and learn what variables affect your ad placement and cost. Not everything is determined by money, so pay close attention to Ad Rank.

If you’re a BoomTown user with a question about this video, please contact Support.

Search advertising isn’t static. With search you’re not paying for placement, these ads are populated by a dynamic auction that happens at the time of search. This means once you place your bid on a set of keywords, there are many of different variables that determine your ad placement and cost. And the tricky part is, it’s always changing. You may be at the top placement with one search, and the bottom with next.

Your ads change like this because search engines, like Google, auction off placement when more than one person is bidding for the same keyword. The engine then grade the ads with something called Ad Rank to determine the position, which is a mixture of your bid and your quality score.

Easiest way to think of it… Is that it’s similar to a real auction with preference to relevance. A search term is open to bidding. You and any other website can place a bid to get their ads shown for this keyword. The engine only wants to show relevant ads that match what users are looking for, so an ad for eye glasses isn’t going to do well under a keyword term of “homes for sale.” That would create a disconnect. People won’t like it, and the engine will pick up on that — driving up costs for those ads.

Google’s mission is clear. They want to provide relevant experiences to search users and reward advertisers that do that. This along with the ability to manipulate what you are willing to pay gives you the opportunity to drive highly targeted traffic to your website at a cost that makes sense to you.

AdWords Auction Guide

Understand what the AdWords auction is and what it means for your business.
Success Management Team

Optimized Lead Generation

BoomTown's search engine marketing, analytics & engineering teams help you hit your target audience, and make sure you’re always optimized for that next search or click.

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