Google Ads run different auctions for each ad location

Google updated its documentation on how the Google Ads auction works to say, “We run different auctions for each ad location.” Previously, that document did not say that and the PPC community is wondering what changed and why Google did not announce this change more broadly.

What changed. Google added these lines to the top of that document:

“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.”

Why the change. Google has not yet commented (I asked last night) on why the change but I suspect this has to do with Google changing its definition of top ads last year. Then Google told us this just a “definitional change” and that it would not affect how performance metrics are calculated.

The definition was updated to say:

“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.”

Google has been mixing ads within the free organic results for the past year or so and with that change, maybe it makes sense to change how the ad auction works.

In regards to the section around Google showing the same ad on the same search results page but in different ad positions. Google did tell us last December that they are experimenting with double serving ads.

Community reaction. Anthony Higman spotted this change and posted about it on LinkedIn, he wrote:

“Not sure how that can actual 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 chimed in on that LinkedIn post and wrote:

“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 responded as well and wrote:

The competitiveness of an auction – If two ads competing for the same position have similar ad ranks, cach 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 cost per click 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 we care. Google changing how the ad auction works can change how your ads rank within the Google search results. I suspect this change has been in place for some time now but now Google is clarifying this in their documentation.

We are waiting to hear from Google on this change and will update this story when we hear back.