Question: Jim has created a Google Search ad with a bid of $5. Two other advertisers in an auction have bids of $2.50 and $2. How much would Jim pay for the first spot in the auction?
- $5
- $4.50
- $2.50
- $2.51
Or
- £4.50
- £2.50
- £5
- £2.51
Explanation: Jim would only pay $2.51 to win the top position in the Google Ads auction. In a standard second-price auction, advertisers don’t need to pay their full maximum bid. Instead, they pay just $0.01 more than the next highest bid.This auction model helps advertisers get the best possible ad placement like the first position on the search results page while only paying the minimum amount needed to beat the competition. This makes bidding more cost-effective and helps improve return on ad spend (ROAS) in Google Search campaigns.