Google has published an article with general information on how search advertising works.
According to Google, ads are still not displayed for most searches. The purpose of a search engine is to provide users with relevant information to help them find what they are looking for. At the same time, the company earns only if the ads are useful and relevant, as shown by clicks on ads.
Frequency of ad serving
In fact, over the past 4 years, an average of 80% of Google searches have not resulted in top-ranked ads. Only a small fraction of sessions (less than 5%) ended up showing four text ads at the top of the SERP.
Almost all advertisements are displayed based on commercial requests, notes NIX Solutions.
Impact of the pandemic
In April 2020, users saw 40% fewer top-ranked text ads than in April 2019 on average. According to Google, this was due to the fallout from the COVID-19 pandemic. In particular, with the reduction of advertising budgets and changes in the search behavior of users who were less interested in purchases during that period.
Universal access to promotion
Google also noted that all companies, regardless of size, can reach leads through search, and during a Google Ads auction, advertisers are often charged less, and sometimes much less than their bid.
The importance of relevance
Google stressed that it doesn’t make a cent until users find the ad relevant enough to click through.
The search engine is investing heavily in further improving its ability to serve users with highly relevant ads. It also improves the overall user experience.
Over the past four years, the company has cut the number of low-quality and irrelevant ads by three times.
Differentiating paid and organic results
Google also noted that it continually tests mobile and desktop search results to ensure that ad labels meet search engine standards and differentiate organic and paid results.
User data protection
Summing up, the company has once again assured that they do not sell personal information and are responsible for maintaining the confidentiality of user data.