Google has updated its “How the Google Ads auction works”1 page to add a line that says that Google will run different auctions for each ad location.
The new text added to this page says:
“When someone searches on Google, we run different auctions for each ad location – for example, top ads are selected by a different ad auction from ads that show in other ad locations. Your ads will only show once in a single ad location, but across ad locations, your ads can show more than once.”
This is an interesting change to how we understand the Google Ads auction. But Google changed the definition of top ads2 last year because they continue to mix ads with organic results3.
Here’s how it works:
Ad auction for every search: Every time a user searches on Google, an ad auction takes place to determine which ads will show and in what order.
Multiple auctions for different positions: Google Ads does not just conduct one auction to select all ads. Instead, it runs multiple auctions for different ad slots (e.g., top of the page vs. bottom of the page).
Ad Rank determines placement: Each advertiser’s Ad Rank (based on bid amount, ad quality, expected impact of ad extensions, and other factors) determines which position their ad secures.
Position-specific thresholds: Different ad placements may have different minimum Ad Rank thresholds, meaning a higher quality score or bid may be needed to appear in a premium position.
Dynamic pricing (second-price auction model): The actual cost per click (CPC) is determined by the Ad Rank of the competitor below you, rather than just your maximum bid.
This system ensures that Google Ads auctions are competitive and fair, allowing high-quality ads to gain better positions even if they don’t have the highest bids.
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Optimization tips for better ad position
To optimize your Google Ads for better ad positions, focus on the following key areas:
1. Improve your quality score
Google rewards high-quality ads with better positions at lower costs. Quality Score is based on:
✅ Expected Click-through rate (CTR) – Improve your ad copy to make it more engaging.
✅ Ad relevance – Ensure your keywords closely match the ad copy.
✅ Landing page experience – Make sure your landing page is fast, mobile-friendly, and relevant.
2. Optimize your bidding strategy
🔹 Use automated bidding – Consider “Target Impression Share” if you want to secure a top position.
🔹 Increase bids for high-value keywords – Adjust bids for keywords with strong conversion potential.
🔹 Leverage bid adjustments – Increase bids for devices, locations, or times that perform well.
3. Write highly relevant and engaging ad copy
📝 Include keywords in your headlines & descriptions – This increases relevance.
🎯 Use emotional triggers – Highlight benefits, urgency, or exclusivity (e.g., “Limited Offer!”).
✅ Add a clear Call-to-action (CTA) – Guide users (e.g., “Shop Now,” “Get a Free Quote”).
4. Make the most of ad extensions
Extensions increase visibility and CTR, which helps boost Ad Rank.
Use:
✔ Sitelinks – Link to important pages (pricing, testimonials, etc.).
✔ Callouts – Highlight USPs (e.g., “Free Shipping,” “24/7 Support”).
✔ Structured snippets – Display product/service categories.
✔ Call extensions – Great for businesses that want phone leads.
5. Improve landing page experience
🌟 Speed matters – A slow site increases bounce rate, reducing ad performance.
📱 Mobile optimization – Ensure seamless experience across devices.
🎯 Message match – Keep ad copy and landing page consistent.
6. Monitor and optimize regularly
📊 Check auction insights – See how you compare to competitors.
📈 Adjust keyword strategy – Pause low-performing keywords, and add negative keywords.
🎯 A/B test ads – Test different headlines, descriptions, and CTAs.
Conclusion
Google Ads doesn’t just run one auction for all ads—it holds separate auctions for each ad position. This means that securing a top spot isn’t just about bidding the highest factors like ad quality, relevance, and expected engagement play a huge role. To improve your ad position, focus on crafting compelling, keyword-rich ad copy, optimizing your landing pages, and using smart bidding strategies. The key is to balance quality and bid efficiency to get the best possible placement without overpaying.
Want to brainstorm with our team on new ways to scale your business with YouTube Ads (and other performance video platforms)?
Join us for a free YouTube ad brainstorming session:
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Jovan Simic, Account Manager
Jovan Simic is an experienced media buyer responsible for over $30M in profitable ad spend. At Inceptly, Jovan has collaborated with prominent brands, including Advanced Bionutritionals, Amplify Solar, Fittrack, John Crestani, and The Social Man, demonstrating his versatility and expertise. His deep understanding of media buying and consistent track record of success make him an invaluable asset to the industry.
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