Every time someone searches on Google or visits a site with ads, Google Ads runs a real-time auction to decide which ads show and in what order.
There are separate auctions for each ad position (like top vs. bottom of the page).
The ad auction is based on six key factors:
Your Bid – The max amount you’re willing to pay per click.
Ad and Landing Page Quality – Relevance, usefulness, and user experience all matter.
Expected Impact of Ad Assets – Extra info like sitelinks or call buttons can boost performance.
Ad Rank Thresholds – Minimum quality standards must be met to appear in certain positions.
Ad Context – Includes user location, device, time of search, search terms, and other signals.
Competitiveness of the Auction – Closer ad ranks mean similar chances to win a spot; bigger gaps favor the higher-ranking ad.
Even with a lower bid, a high-quality, relevant ad can win a better position at a lower cost.
