Google Ads auction infographic: six Ad Rank inputs (bid, ad and landing page quality, thresholds, competition, search context, assets and formats), an illustrative example where a higher-quality ad outranks a higher bid, a note on actual cost per click, the three Quality Score components, and three steps on what to do.

Oct 6, 2026

How the Google Ads Auction and Ad Rank Work (Infographic)

How the Google Ads auction decides ad positions: the inputs to Ad Rank, why quality can beat a higher bid, what you actually pay, and what Quality Score is for.

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<a href="https://searchinsider.io/infographics/google-ads-auction"><img src="https://searchinsider.io/research/google-ads-auction/google-ads-auction-infographic.png" alt="Google Ads auction infographic: six Ad Rank inputs (bid, ad and landing page quality, thresholds, competition, search context, assets and formats), an illustrative example where a higher-quality ad outranks a higher bid, a note on actual cost per click, the three Quality Score components, and three steps on what to do." style="max-width:680px;width:100%;height:auto;" /></a><p>Source: <a href="https://searchinsider.io/infographics/google-ads-auction">Google Ads auction infographic</a> by Search Insider.</p>

How does the Google Ads auction decide who shows first?

The short answer: Every search runs an auction. Google calculates Ad Rank from your bid, your ad and landing page quality, thresholds, competition, search context and the expected impact of assets. A better ad can win a higher spot for less.

Based on Google Ads Help.

What it shows

An ad auction runs every time someone searches on Google.
Ad Rank decides whether an ad is eligible to show and where it ranks.
Ad Rank considers your bid, ad and landing page quality, thresholds, competition, search context and the expected impact of assets.
Higher quality can win a higher position at a lower price.
Actual CPC is what's needed to clear thresholds and beat the Ad Rank below you, often less than your max bid.
Quality Score is a diagnostic tool, not an auction input.

What to do

First: Improve ad relevance and landing pages before raising bids.
Assets: Add relevant assets.
Quality Score: Use it to diagnose, not as a target.

The walkthrough

How does the Google Ads auction work?

An ad auction takes place every time someone searches on Google or visits a site that shows ads ^[2]. Your Ad Rank is calculated first to decide whether your ad is eligible to show, and again to decide where it ranks against other eligible ads ^[1].

What determines Ad Rank?

Google lists your bid, the quality of your ads and landing page, Ad Rank thresholds, the competitiveness of the auction, the context of the search such as location, device and time, and the expected impact of assets and ad formats ^[1].

Can you outrank a higher bid?

Yes. Google says that even if competitors bid more, you can still win a higher position at a lower price by using highly relevant keywords, ads and assets ^[2]. Higher quality ads typically cost less per click ^[4].

How much do you actually pay per click?

Your actual CPC is what's minimally required to clear the Ad Rank thresholds and beat the Ad Rank of the competitor immediately below you, which is often less than your maximum bid ^[3].

Is your ad position fixed?

No. Ad position can change each time depending on competition, the context of the search and your quality at that moment ^[1].

Is Quality Score part of the auction?

No. Quality Score is a diagnostic tool based on expected clickthrough rate, ad relevance and landing page experience, and Google says it isn't an input in the ad auction ^[5]. Google advises using it to diagnose low quality ads rather than optimizing the score itself ^[4].

Sources

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