Multiple Auctions for Different Ad Locations: What Advertisers Need to Know

The PPC world was in a tizzy last week when a Google Ads change was spotted by Anthony Higman: Google running different auctions for different ad locations. 

The justification? According to Google:

“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.”

So, what does all of this mean? In this blog, I’ll break down why only part of this makes sense to me and what takeaways advertisers need to be aware of.

What Makes Sense… and What Doesn’t

To me, the change itself makes sense at first when we think about how Google is now double-serving ads on a SERP and testing ads within the organic listings. 

What doesn’t make sense is the communication of this change. Instead of announcing it when the tests were rolled out, this update flew under the radar with no fanfare.

In light of Google being found in violation of antitrust laws, one would expect more clarity and openness. However, the explanation regarding multiple auctions was anything but transparent.

Have no fear - Google’s Ad Liaison, Ginny Marvin, stated:

"We've run different ad auctions for different ad placements for many years. We recognize that this aspect of how the auctions work on Search may not be widely known, so we have updated our documentation to provide more details. This is also now reflected in our documentation on Ad Rank. As we continue to experiment with testing different ad configurations, we wanted to bring more clarity into how the Google Ads auction works."

Ad Rank and the Shift in Bidding Strategies

The more surprising update, however, came in the form of a shift in how Ad Rank works, as noticed by Chris Ridley. An additional update (that also dropped under the radar in 2024) clarified:

“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.”

This is a significant change from what was previously stated. Ad Rank was originally seen as a tool to display better ads, rather than artificially increasing bids for “increased certainty of winning,” as stated in 2023:

“So even if your competition has higher bids, you can still win a higher position at a lower price by using highly relevant keywords, ads, and assets.”

This also conflicts with the general advice in the Ad Rank help docs that state:

“Your actual cost-per-click (CPC): Higher quality ads can often lead to lower CPCs. That means you pay less per click when your ads are higher quality.”

What Does This Mean for Advertisers?

What does all this mean? Honestly, Ad Rank seems to be a new knob Google is turning in their mission to “Shake the Cushions” from advertisers. 

For those who are now paying more for the “increased certainty,” this goes against the traditional intent of Ad Rank to deliver the best results at the best price, which is concerning.

All in all, the biggest takeaway here is that:

1. Google Ads is continuing to squeeze every dollar out of advertisers, despite the anti-trust loss last year.
2. Communication and PR are at an all-time low from Google, which is quite shocking given the DOJ news.
3. Nothing will fundamentally change in your accounts as the multiple auctions for different ad placements have been around for “years.”
4. The best advice might be to religiously read the help docs - this could be the only way you’ll hear about some of these changes.

If you’re not sure how some of these changes might affect your Google Ads, get in touch with our team!