How does the Google Ads bidding process work?

The bidding process in Google Ads is designed around an auction system that takes place when users conduct relevant searches. Advertisers participate by placing bids to obtain ad placements in this auction. When a user performs a search that triggers the keywords associated with an advertiser’s campaign, Google conducts an auction in which various factors are taken into account, including the bid amount and the ad's relevance.

Bids can vary based on competition for specific keywords, and the winning ads are determined by a combination of the bid amount and the quality of the ads — this is known as the Ad Rank. Consequently, even if an advertiser doesn't have the highest bid, they could still achieve a favorable position if their ad's quality score is much higher than competitors. This dynamic allows advertisers to strategically compete for visibility based on both their budget and the relevance of their messaging, rather than paying a flat rate or having equal placements for all ads, which is not how the auction framework operates.

In summary, understanding that advertisers bid during relevant searches and that the auction determines who gets displayed is crucial to navigating the Google Ads platform effectively.