It’s about quality, not quantity
Organizations that want to advertise in Google Search participate in an auction and set their own bids (the amount they are willing to pay per click) and budgets. But advertisers’ bids are only one component of our ad ranking algorithms. When it comes to the ads you see, the relevance of those ads to your search and the overall quality of the advertisers’ ads and websites are key components of our algorithms as well. That means that no matter how large or small the organization is, they have an opportunity to reach potential customers with their message in Google Search. In the Google Ads auction, advertisers are often charged less, and sometimes much less, than their bid.
The experience of our users comes first, which is why we only show ads that are helpful to people. Even for the fraction of search queries where we do show ads, we don’t make a cent unless people find it relevant enough to click on the ad. We invest significantly in our ads quality systems to continuously improve on our ability to show ads that are highly relevant to people, and helpful to what they’re searching for. Over time, this has led to better, more relevant ads and major improvements in the overall user experience. In fact, over the last four years, we’ve been able to reduce the rate of low quality and irrelevant ads by 3x.
Part of delivering a great user experience is also ensuring that Google Search ads are clearly labeled as coming from an advertiser―and we’ve long been an industry leader in providing prominent ad labeling. When Search ads do appear, they have the word “Ad” clearly labeled in bold black text in the current design. We rely on extensive user testing both on mobile and desktop to ensure ad labels meet our high standards for being prominent and distinguishable from unpaid results.