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Learn how the Google Ads auction works and how to bid strategically without overspending
Part of Run Your First Google Ads Campaign
Educational content slides
Every time someone searches, Google runs an instant auction. Advertisers compete for ad positions. But it's not like eBay where highest bid wins. Google's auction considers both your bid AND your Quality Score. You set a maximum bid—the most you'll pay per click. But you often pay less. Understanding how this works prevents you from either overpaying or losing out on valuable traffic.
Test your understanding with this quiz.
You set a max bid of 2.30. Why is this happening?
Complete this exercise and get AI-powered feedback.
Work backward from your economics to determine smart bid amounts.
Key insight: Know what a click is worth BEFORE you bid on it.