Jim would pay $2.51 or £2.51 for the first spot in the auction.
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?
Correct Answer is: $2.51 or £2.51
Jim would pay only $2.51 for the first spot in the auction. In a standard second-price auction-based only on bids, the advertiser doesn’t have to pay their full bid. They only have to pay $0.01 more than the amount of the next highest bidder.
- Learn more here: Skillshop Search Certification
- Third chapter: Understand the Google Ads Auction
- Sub-Chapter: What is the Google Ads auction?