Ad Words

Understanding AdWords is known to be quite complex. Although there are many aspects that come together in order to make AdWords possible, I chose to focus mainly on the ad auction for this blog post because that came across as the most interesting to me. This is essentially the starting point to any mainstream search. I have always wondered how which ads are placed where and the process they go through in order to distinguish this. There is a six step process that all ads go through in order to make this possible.

The first step is obviously the search. From this, we move onto the second step which is where the ads are whittled down. For example, If I searched for "coffee shop", The AdWords system would go ahead and search for keywords that most closely match the phrase I am searching. This takes us to the third step in which the AdWords system will narrow down the search by ignoring any ads that are not eligible such as ones that disapproved or target a foreign country. After these three steps are completed, the ads are ordered. This is primarily when the auctioning begins. These ads are based off a formula called "ad rank"which is a combination of bid amount, the quality of your ads and landing page, and the expected impact of any other aspects such as extensions and ad formats.

 After this process is completed, the ads will appear for coffee shops. Although this completes the process, it does not bring it to an end. The auction process is constantly changing with different results all based on the competition there is. With this being said, it is normal for positions on a page to fluctuate.