Google just quietly dropped a big update, and if you’re running search ads, you need to pay attention. Turns out, Google runs separate auctions for each ad placement on the search results page.

That means the top ad spots, bottom ad spots, and other placements aren’t competing against each other. So if you’ve been bidding aggressively to win a top spot, thinking you’re beating out bottom-position ads—yeah, that’s not how it works.

Each position has its own auction, its own level of competition, and its own pricing structure. If you’re not actively adjusting bids based on where your ads are showing, you’re probably overspending in some areas and missing easy wins in others.

Via Google Ads Help

What’s Happening?

Google just clarified how its ad auctions work, and it changes how you should think about bidding. Here’s what’s different:

• Top ads and bottom ads don’t compete against each other. Google runs completely separate auctions for each ad position. You’re not fighting against all other advertisers—you’re just bidding for a specific placement.
• Your ad could show more than once for a single search. Since these are different auctions, it’s possible for the same advertiser to win multiple placements in different spots on the page.
• Each position has its own pricing and competition level. Bidding for position #1 is completely separate from bidding for position #4. You’re not just bidding for visibility—you’re bidding within specific placement groups.

If you’re not adjusting your bids based on placement, you might be throwing money away on expensive top spots or missing better opportunities in lower positions.

How It Affects Your Campaigns

This completely changes how search ad bidding works and has some serious implications:

• You might be overpaying for top placements. If you’ve been maxing out your bids to secure top-of-page positions, you might be wasting budget on an auction that isn’t even competing with lower placements.
• Lower placements could be a goldmine. If top placements are overpriced, but positions lower on the page convert well at a lower CPC, you might get better results by shifting your budget.
• Your bidding strategy needs to be more targeted. If you’ve been treating all positions the same, it’s time to rethink how you allocate spend based on where your ads actually perform best.

Bottom line—you can’t afford to take a one-size-fits-all approach to bidding anymore. With each placement running its own auction, blindly chasing top positions could mean wasted spend, while lower placements might be delivering better returns. If you’re not actively analyzing performance by position, you’re leaving money on the table.

What You Should Do Next

If you’re advertising on Google Search, now’s the time to start bidding smarter.

1. Check Your Performance by Ad Position
   • Look at your conversion rates, CPCs, and CTRs for different placements. Are you paying more for worse results at the top?
2. Test Adjusting Your Bids for Lower Placements
   • Don’t assume the top spot is the best. If lower placements are driving cheaper, high-converting clicks, reallocate budget accordingly.
3. Watch for Pricing & Competition Shifts
   • Since each auction is separate, monitor how CPCs change across different placements and adjust your strategy as needed.
4. Use Automated Bidding Carefully
   • If you’re relying on Target ROAS or Max Conversions, make sure it’s actually prioritizing profitable placements and not just throwing your budget at the top of the page.

This completely changes how advertisers should approach bidding. If you’ve been assuming all ad positions compete in the same auction, it’s time to rethink your strategy.

Want to make sure you’re not wasting budget and are actually bidding where it matters? Let’s talk. We’ll help you dial in your bidding strategy, maximize efficiency, and make sure you’re competing in the right auctions—without overspending.