Google Ads Runs Separate Auctions by Location

Google recently updated its documentation on how the Google Ads auction operates, introducing a clarification that has caught the attention of the PPC community. The update now explicitly states that different auctions are run for each ad location, a detail that was not previously mentioned in the official documentation. This change raises questions about how Google determines ad placements and whether it impacts bidding strategies for advertisers.

The revised document now includes the following statement: “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 suggests that Google is refining its approach to selecting and displaying ads in different positions on the search results page.

Previously, many advertisers assumed that a single auction determined all ad placements on a given results page. However, this update indicates that each ad location—such as the top, bottom, or side—has its own independent auction. This could have significant implications for advertisers, particularly in terms of cost-per-click (CPC), ad ranking, and overall campaign strategy. If separate auctions are being held for different positions, advertisers may need to reassess their bidding tactics to ensure they remain competitive across various ad placements.

The PPC community has responded with curiosity and concern, questioning why Google did not publicly announce this change. Some experts speculate that this has always been the case but was only recently added to the documentation for clarification. Others believe it may signal a shift in how Google prioritises ad placements, potentially impacting traffic distribution and conversion rates for different positions.

For advertisers, this update underscores the importance of continuous monitoring and optimisation of their Google Ads campaigns. Understanding how different auctions operate for various ad locations could help marketers refine their strategies, ensuring they maximise their visibility while controlling ad spend. As the PPC landscape evolves, staying informed about changes like this is crucial for maintaining a competitive edge.

 

Possible Reason Behind the Change

Google has not yet provided an official explanation for the recent update to its ad auction process, but many in the PPC community speculate that it is related to changes in how Google defines top ads. Last year, Google revised its definition of top ads, stating that it was merely a “definitional change” and that it would not impact how performance metrics are calculated. However, this latest update to the Google Ads auction process suggests there may be more to the story.

The updated definition of top ads now provides additional clarity on their positioning in relation to organic search results:

“When people search on Google, text ads can appear at different positions relative to organic search results. Top ads are adjacent to the top organic search results. Top ads are generally above the top organic results, although top ads may show below the top organic search results on certain queries. Placement of top ads is dynamic and may change based on the user’s search.”

For the past year, Google has been integrating ads more seamlessly within organic search results. This means that ads do not always appear in fixed positions at the top or bottom of the search engine results page (SERP) but instead may be mixed in with organic listings depending on the query. As part of this shift, it appears that Google has also adjusted how its ad auction works, running separate auctions for different ad locations rather than a single auction that determines placements across all positions.

 

Impact of Multiple Ad Auctions

One of the most interesting aspects of Google’s update is its clarification that different auctions are held for each ad position. The updated documentation now states:

“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 statement suggests that advertisers may now have opportunities to appear in multiple ad locations for the same search query, potentially increasing their visibility. However, it also means that bidding strategies may need to be adjusted, as advertisers are no longer competing in a single auction that determines ad placement across the entire page. Instead, they are now participating in multiple separate auctions for different sections of the SERP.

 

The Connection to Google’s Double Serving Tests

Another key factor in this change is Google’s ongoing experiments with double serving ads. In December, Google confirmed that it had been testing the possibility of showing the same advertiser’s ad more than once on a single search results page but in different positions. This means that a brand might have an ad appearing at the top of the page and another further down within the organic search results, providing multiple touchpoints for users.

The decision to introduce multiple ad auctions could be directly tied to this experiment. By running separate auctions for different placements, Google can control when and where an advertiser’s ad appears, potentially allowing for more flexibility in ad distribution while also increasing competition for different placements.

 

What This Means for Advertisers

For advertisers, these changes could have a significant impact on campaign strategy. The shift to multiple auctions means that:

• Ad placements are now determined by separate auctions, which could lead to increased competition for premium positions such as the top ad slots.
• Bidding strategies may need to be adjusted, as advertisers must now consider the possibility of participating in multiple auctions for different ad locations.
• Advertisers may see variations in ad performance, as different placements may have different click-through rates and conversion rates depending on how they appear in search results.
• Campaign performance tracking becomes more important than ever, as advertisers will need to monitor how their ads perform in different locations and adjust their strategies accordingly.

As Google continues to refine its ad auction system and experiment with new ways of displaying ads, staying informed and adapting to these changes will be crucial for businesses looking to maintain visibility and drive conversions. Marketers and advertisers should keep a close eye on their campaign performance metrics and be prepared to tweak their bidding and targeting strategies to align with these evolving search ad dynamics.

 

Community Reactions to Google’s Ad Auction Changes

The recent update to Google’s ad auction process has sparked discussions and concerns within the digital marketing community. Many experts are questioning how multiple auctions can run simultaneously without influencing each other and what this change means for advertisers.

Anthony Higman was among the first to notice the update and shared his thoughts on LinkedIn, writing:

“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?”

Navah Hopkins also weighed in on the discussion, expressing concerns about how this could impact smaller advertisers. She commented:

“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.”

Chris Ridley added his perspective, highlighting how this change could affect ad competitiveness and cost-per-click (CPC):

“The competitiveness of an auction – If two ads competing for the same position have similar ad ranks, each will have a similar opportunity to win that position. As the gap in ad rank between two advertisers’ ads grows, the higher-ranking ad will be more likely to win but also may pay a higher CPC for the benefit of the increased certainty of winning. It definitely sounds like something they added to try and justify the ‘shaking of the cushions.’ Back in my day, we were told that a higher Ad Rank would make your CPC lower.”

 

Why This Matters

Changes to Google’s ad auction system could have a direct impact on how ads are ranked and displayed in search results. While it’s unclear when this shift was implemented, Google is now explicitly clarifying the process in its documentation. This update could mean that advertisers need to rethink their bidding strategies, especially as separate auctions for different ad placements may alter competition dynamics.

As the industry awaits further clarification from Google, advertisers should monitor campaign performance closely and be prepared to adjust their strategies based on these evolving auction mechanics.