Google recently updated its documentation on how the Google Ads auction works, and it’s raising a lot of questions—and concerns—among advertisers.
Marketing expert Anthony Higman was among the first to call attention to this, questioning how Google’s new system can still function as a fair auction. Previously, Google ran a single auction every time someone searched or visited a site with ads. Now, they’re running separate auctions for each ad location and platform.
What’s changing?
Here’s the key difference:
- Before: A single auction determined which ads appeared and in what order.
- Now: Each ad placement has its own independent auction. For example, top ads are chosen in a separate auction from other ad placements.
Anthony finds this shift puzzling, stating:
“Not sure how that can actually work and still be an auction? And how multiple auctions can be going on at the same time and not influence each other?”
Why advertisers are concerned
Navah Hopkins, another industry expert, raised an alarming possibility:
“This is going to erode the quality of the SERP so badly. Get ready for big-budget brands to own everything, and everyone else running to Demand Gen for some chance at standing out.”
Anthony agrees, warning that small businesses could be pushed out.
“Small businesses make up so much of the marketplace, but with this waste, they will never last.”
The potential impact
- More control for Google – If each ad placement has its own auction, Google has more flexibility in determining which ads show where.
- Increased costs for advertisers – With separate auctions, advertisers may need to bid higher for premium placements.
- Big brands may dominate – Large advertisers with bigger budgets can potentially secure multiple placements across a single search result, reducing visibility for smaller businesses.
- Shift to alternative strategies – Some advertisers may start relying more on Demand Gen, Performance Max, or other ad formats to maintain visibility.
This update changes how ads appear on Google, and while the full impact is yet to be seen, advertisers—especially small businesses—should prepare for potential shifts in competition and costs.
You can check out the whole discussion on Anthony’s LinkedIn profile here.
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