What is Auctioning in PPC? PPC Agency Toronto Explains

Welcome everyone to this lesson. Today we, the best PPC Agency in Toronto, will tell you everything you need to know about Auctioning in PPC.

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Auction in PPC Advertisment

It really depends on what keywords you’re targeting and what audiences you’re targeting. Because you’re entering an auction against another advertiser, generally, the amount you’re willing to pay for each click depends on the other advertisers as well. It depends on how much they’re willing to pay for each click. If other advertisers are willing to pay much more than you for each click, then you’re gonna have trouble ever winning the auction. The way it works is when you’re bidding for something. Let’s say you and five other advertisers are bidding for a specific keyword. Every time when someone typed something into Google, you’re gonna be entering an auction to try to get your advertisement out there.

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Example Time

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Here is an example. Someone types in accounting software. If you can see right here, the top three results are all advertisements. They’re all based on accounting software. Each of these companies went to enter this auction. If you click through any of these, it’s going to be considered an advertisement click. You can see the little ad symbol next to each of the URLs. The way it works is these advertisers are entering an auction because they’re bidding on the keyword “accounting software”.

Explanation | PPC Agency Toronto

They’re each bidding a certain amount and if we come back over here, it’s going to say the advertisements that show are based on a bid. Basically, the way it’s going to work is that Google Ads is going to take into account how much the advertiser is bidding. They also use something called quality score. This is going to look at their landing page. It will look at the average click-through rate historically for this advertiser. It uses another score along with the bid to basically come up with what’s called an ad rank.

Each ad will be ranked in the Google search results based on their ad rank. That’s going to be a combination of Quality Score and bid. That’s basically how the auction works. It’s going to take into account the bid, it’s going to take into account the Quality Score and whatever ad has the top ad rank is going to show at the top. Whatever a second is going to show second and so on and so forth.

That’s basically how pay-per-click advertising works. You’re bidding on a certain set of targeting and depending on advertisers, other competitors and different factors are going to determine how much you’re paying, how often your ad shows up in the search results, and how often your ad gets clicked.

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