Explain how the Google Ads auction works

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When a user searches on Google, an auction takes place to determine which ads will be displayed. 1. Advertisers place bids for the ad placement, and the bid represents the maximum amount they're willing to pay for each click on their ad. 2. Google uses an algorithm called Ad Rank to determine the winner of the auction. Ad Rank is calculated by multiplying the advertiser's bid with their Quality Score, which considers factors such as relevance, landing page experience, and expected click-through rate. 3. The highest Ad Rank wins the auction and their ad is displayed in the search results. However, the winning advertiser doesn't necessarily pay their full bid amount. They only pay enough to beat the next highest bidder, up to their maximum bid. 4. This process repeats for every search query, and ad placements can change depending on the bids, Quality Scores, and competition at any given time.
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