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pla-auction-summary
Celebird Support Resources
PLA Auction Summary
Google Shopping Product Listing Ad Auction Summary
Every time a search query is made on Google or Google Shopping, Google runs an auction.
The auction is an auction for ad clicks; advertisers (merchants) only pay when they receive a click on an ad.
Each auction has a fixed number of slots where ads will be shown.
Each auction shows a limited number of relevant ads.
For example, assume a search query has been run on Google or Google Shopping
Assume there are two positions (slots) where ads could appear.
Assume there are four merchants with different feeds, bids, and quality scores.
Assume the bids are $4, $3, $2, and $1
If ad auctions results were based only on bids, then only the $6 and $4 ads would show.
However, ad auction results are based on a combination of bids and quality. High-bid does not necessarily win.
Ad placement is based on both bids and quality.
Quality (score) has at least the following components
click-through rate:
the number of clicks that your ad receives divided by the number of times your ad is shown (called impressions).
relevancy:
relevancy of the submitted (feed) data to the ad Google wants to show.
relevancy of the submitted (feed) data to the individual user and their search-query.
note: product-listing-ads do not use keywords to determine relevance.
landing-page quality:
relevant content
original well-written content
easily navigable
quick load times
no pop-ups, pop-unders, or similar
business transparency
image quality and the quality of all data submitted to Google, ratings, and reviews, may also influence the quality score for Product Listing Ads.
Ad Rank (placement) is a product of the bid and quality (score).
Using the bid amounts of $4, $3, $2, and $1
Using the quality scores of 1, 3, 6, and 8
Ad-Rank for the auction is 4, 9, 12, and 8
the $3 bid wins over the $4 bid
the $2 bid will be shown first