How Google Ads Auction works? Bidding, Quality Score, and Ad Rank

google ad auction
Google Ads

How Google Ads Auction works? Bidding, Quality Score, and Ad Rank

Google Ads Auction works by combining advertisers’ bids, the quality of their ads, and the resultant Ad Rank. Advertisers set a bid for their ads, which is the maximum they’re willing to pay per click. Google assesses the Quality Score of each ad based on its relevance and quality. Ad Rank, determined by multiplying the bid with the Quality Score, decides the placement of ads. During an auction, ads with higher Ad Ranks are displayed prominently, and the cost per click is calculated based on the advertiser’s position and the bid of the competitor below them.

Here are 3 videos by Corey Frankosky from describing the same:

Video Summary:

  • πŸ“Š The Google ads auction determines which advertisements will be shown on the search engine every time someone makes a search.
  • πŸ“Š Google assigns a value called ad rank to each individual advertisement based on various factors, determining the order in which they are shown to users.
  • πŸ’° The quality of your ads and the expected impact from your ad assets are crucial factors in the Google Ads auction.
  • πŸ“Š The less relevant your ad is to the actual search term, the lower your ad rank will be, emphasizing the importance of ad relevance and quality.
  • πŸ“Š The ad with the highest ad rank will be placed at the top of the search results, influencing the likelihood of being clicked on.
  • πŸ’° The Google ads auction is constantly happening, driving the best possible advertisements to generate conversions for advertisers.
  • πŸ” Quality score in Google Ads is an estimate of how relevant your ads, keywords, and landing pages are to the person who sees your ad.
  • πŸ“Š Building Google ads campaigns around relevant search terms can increase the chances of ranking at the top of the auction.


Here’s what is explained in this video:

  • πŸ“Š Quality score in Google Ads measures ad quality using expected click-through rate, ad relevance, and landing page experience.
  • 🎯 A 10 out of 10 quality score can help advertisers lower costs over time and provide a better ad experience for consumers.
  • 🎯 Advertisers need to ensure that their assets and search terms are all geared around the specific keyword to improve ad relevance and expected click-through rate.
  • πŸ“Š Quality score is not a key performance indicator and should not be used to determine campaign performance solely based on high scores.
  • 🎯 Understanding and improving quality scores can help optimize your ad campaigns for better results.
  • πŸ“Š Quality scores can be used to track improvement over time and compare historical data to see if quality scores are improving.
  • 🎯 The key to improving quality score is to focus on a high click-through rate, relevant ad experience, and relevant landing pages.


  • πŸ“Š The ad rank score is determined by factors such as bid, expected click-through rate, ad relevance, landing page experience, search context, competition, device, and time.
  • 🎯 Quality score in Google Ads is based on expected click-through rate, landing page experience, and ad relevance, each scored as average, above average, or below average.
  • πŸ’° The main factors that matter for ad rank are quality score and bidding strategy.
  • 🎨 Tailoring the ad and landing page to the specific search query can result in a higher ad rank and better performance in Google Ads.
  • πŸ“Š The quality of your advertisements and your landing page experience are crucial factors in determining your ad rank in Google Ads.
  • πŸ’° Your bid and quality score are separate factors that make up your ad rank, with the quality score being based on your ads, landing page, and expected click-through rate.
  • πŸ“Š The auction for ad rank considers the search context, past search behavior, and overall competition for the search.
  • πŸ“Š Creating a great user experience can result in a high ad rank, allowing you to pay less in the Google ads auction.


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