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Same Bid, same ad spot auction : Who wins?

[ Edited ]
Visitor ✭ ✭ ✭
# 1
Visitor ✭ ✭ ✭

Hi, this scenario concerns the display network only

 

I have multiple campaigns/ad groups I run.

They have the same CPC bids mostly, and they are often in the same geotargeting.

 

1) When they are competing one agaisnt another, am I hurting myself by entering myself into the bidding process on both campaigns?

2) If they have the same bid, who will win and why?

3) If I have 2 ad groups at , let's say 2$ CPC, and another ads enter the auction with a 1$ CPC, how much my winning ad will pay? 2$ or 1,01$?

 

Thank you,

 

E.

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Accepted by topic author Éric G
July 2016

Re: Same Bid, same ad spot auction : Who wins?

Rising Star
# 2
Rising Star

@Éric G

 

You should not being managing different clients from your account.  That goes against Google third-party policy. You can read up on that here:  https://support.google.com/adwordspolicy/answer/6086450?hl=en

I'll go ahead and answer your questions, but you should discontinue this practice.

 

1) No, because each site in the display network will have its own Quality Score relative to the ad.  It's highly unlikely they are competing with each other due to the fact of how many other ads from other accounts are in the auction at any given time.

2) Depends on the site the ad has the potential to serve on and the QS relative to the site for each ad.

3) That is unknown due to all the other ads bidding in the auction.  Your ads are not the only ones in the equation.

 

 

View solution in original post

Marked as Best Answer.
Solution
Accepted by topic author Éric G
July 2016

Re: Same Bid, same ad spot auction : Who wins?

Rising Star
# 2
Rising Star

@Éric G

 

You should not being managing different clients from your account.  That goes against Google third-party policy. You can read up on that here:  https://support.google.com/adwordspolicy/answer/6086450?hl=en

I'll go ahead and answer your questions, but you should discontinue this practice.

 

1) No, because each site in the display network will have its own Quality Score relative to the ad.  It's highly unlikely they are competing with each other due to the fact of how many other ads from other accounts are in the auction at any given time.

2) Depends on the site the ad has the potential to serve on and the QS relative to the site for each ad.

3) That is unknown due to all the other ads bidding in the auction.  Your ads are not the only ones in the equation.

 

 

Re: Same Bid, same ad spot auction : Who wins?

Visitor ✭ ✭ ✭
# 3
Visitor ✭ ✭ ✭
3) Let's supose there are only those 3 ads in the equation. Then, what would be the winning bid price?

Thank you,

Re: Same Bid, same ad spot auction : Who wins?

[ Edited ]
Rising Star
# 4
Rising Star

@Éric G

 

It's a second price auction, so your bid would be just enough to beat the competitor's bid who lost.  That's assuming QS is equal.  Ad Rank = (QS * Max CPC). Ad Rank is what determines who wins the auction.

 

There is an excellent video from Hal Varian who explains all this in detail:  https://www.youtube.com/watch?v=PjOHTFRaBWA