Explain how does a Google auction work?

Hi,

Each time an ad is eligible to appear for a search, it goes through the ad auction. The auction determines whether or not the ad actually shows and in which ad position it will show on the page.

Here's how the auction works: When someone searches, the Google Ads system finds all ads whose keywords match that search.

Hello,
Whenever someone Googles something, Google's algorithm checks to see if advertisers are bidding on the major keywords of that search query.

Google starts an auction if the keywords are relevant and identifies which advertisers qualify for the auction. If you thought auctioneers move their lips fast, just wait. In just a fraction of a second, Google takes all the qualifying ads and their respective bids to instantly determine which ads show and in what order on the search results page (SERP).

When someone performs a search, all of the ads relevant to that search "compete" based on bid price and other factors such as relevant keywords and geographical location. The winning ads are then displayed.