Welcome to one of the most important lessons: the Google Ads Bid.

Did you know that the whole ads ecosystem is just a big Auction? Thousands of bidders compete to appear on one of the several different Google placements, and there are 6 main factors that determine how your ads appear:

There are 6 main factors in the ad auction that determine which ads appear, and in what order:

• Your bid (also known as Ad Spend): This is you telling the algorithm what's the maximum amount you are willing to pay for a click. If the Ad is set right you usually pay a lot less.
• Ad Quality: Google Ads also looks at how relevant and useful your ad and the website it links to are to the person who'll see it. So it's always good to keep on your mind on your end user.
• Ad Asset (Also known as Extensions): When you create your ad, you've the option to add additional information to your ad, such as a phone number, forms or more links to specific pages on your site. These additions are called ad assets, and if used correctly you can beat competitors who have higher bids by using relevant assets and keywords.
• The context of your ad: With the ad auction, context matters. Google looks at the search terms the person has entered, the person’s location at the time of the search, the type of device they’re using, time of the search, etc.
• 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 cost per click for the benefit of the increased certainty of winning.