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How Google Auction works under the hood?
Hey guys maybe this is the silly question but I’m trying to better understand how Google bid auction works. I know how bidding strategies work, but I’m more interested in an auction. For example:
Let’s say we have 3 accounts, one with Max. clicks (without bid limit), one with Max. conversions, and one with Target CPA. If they have the same Quality score for the given search term, how Google decides the winner?
Reading Google help pages didn’t help, they’re pretty basic, also most tutorials online repeat the same information over and over.
Thank you in advance.
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2 Replies
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The auction and the smart bidding are two separate systems;
1. the smart bidding produces a per-query bid at the time of the auction, based on the predicted performance of the potential ad impression (note: the different smart bidding algorithms will probably produce different bids even though ad quality is the same).
2. the bid enters the auction and the auctioneer decides who will win (based on factors like the bid, ad quality, [insert Google magic here], etc) , and the auctioneer determines the actual payment (based on the type of auction)
Unfortunately, both systems are Google black boxes, so we do not know the exact workings.
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