Google ads decide what ads are to be given what position by a really fast auction that happens every time a user searches the mentioned keywords on Google search bar or visits any site which shows ads. There are several pillars on which Google Ad auction works. They decide the order as well as which ads are to be displayed and which are to be ignored or displayed later.

These factors are :
  • Bid: When the bid is set, it tells Google Ads about the maximum amount any marketer is willing to pay for an ad. This can be increased or decreased at any time and marketers generally end up paying less than decided earlier.
  • Quality of ads: Google ads keep a close eye on how relevant, relatable and useful the ads and the websites attached to it so that it does not waste the time of the user. This assessment process contributes to the quality score which can be monitored and worked upon by managing the Google AdWords account.
  • The expected effect from ad extensions and other formats of advertisements: When an ad is created, the marketer has the option to add extra information to the ad. It can be a phone number or several other links that the user may find useful. Such things are known as ad extensions. Google Ads works in estimating how extensions have been used by the ad provider and how much it will impact the performance of the ad. Using relevant and rich keywords can prove to be very beneficial in creating a good impact on Google Ads.

Considering these factors, Google AdWords creates an auction and then positions are given to various advertisements.

BY Best Interview Question ON 11 Oct 2019