Google Ads' auction mechanism introduces a new element that deepens the complexity

Recent updates to Google Ads' auction mechanism introduce a new element that deepens the complexity of determining the final price per click.

According to a help article update post-September 2023, the "competitiveness of an auction" now plays a significant role, particularly noting that ads with significantly higher Ad Ranks than competitors might face a higher cost per click due to "the increased certainty of winning."

This addition departs from the more superficial understanding that the winning bid pays just $0.01 more than the second-highest bid, introducing a potential premium for firmly positioned ads. This nuanced approach could have significant implications for advertisers strategizing to maximize the efficiency of their Google Ads investments.

Source: post

Author: Dario Zannoni

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