Google Implements Key Changes in Google Ads Auctions and API

Google has made important updates to its auction system in Google Ads and API, which will affect advertisers and developers. These updates concern how auctions work for different ad positions and the rules for creating new accounts via the API.

Separate Auctions for Different Ad Positions

Google has updated the “How the Google Ads Auction Works” page, explaining that auctions for different ad positions occur separately. This means that ads in top positions are selected through a distinct process from those appearing in other areas of the search results page.

How Does the Google Ads Auction Work?

Every time a user performs a search query or visits a website with ad placements, Google runs an auction. The ranking of ads is determined by six factors:

• Bid – The maximum amount an advertiser is willing to pay per click.
• Ad and landing page quality – Relevance, usability, and usefulness.
• Expected impact of ad assets – Additional elements (phone number, links) can improve ad position.
• Ad Rank thresholds – Minimum quality requirements for ads.
• Search context – Device, location, time of search, etc.
• Auction competition – Ads with a higher rank receive priority.

These factors influence how and where your ads will appear.

Changes in Google Ads API: New Rules for Account Creation

Google has also updated the Google Ads API, introducing new rules for account creation via the CustomerService.CreateCustomerClient method. These changes will take effect on March 17, 2025, and include:

• New error codes
• Restrictions for low-spending accounts – Manager accounts that do not meet the minimum spending or active sub-account requirements will be unable to create new accounts. In such cases, the CustomerError.CREATION_DENIED_INELIGIBLE_MCC error will be returned.
• Policy violations – If a manager account has a history of policy violations, it will lose the ability to create new accounts and receive the CustomerError.CREATION_DENIED_FOR_POLICY_VIOLATION error.
• Older API versions (v18 and earlier) will return the general error ContextError.OPERATION_NOT_PERMITTED_FOR_CONTEXT.

Limits on Account Creation

Google Ads API is implementing restrictions on the number of new accounts that can be created. If the limit is reached, the QuotaError.RESOURCE_EXHAUSTED error will appear, indicating the need to wait before trying again.

What Should Marketers and Developers Do?

• Marketers: Be aware that Google Ads auctions now operate separately for each position, which may impact ad visibility.
• API Developers: Ensure that their applications support new error codes and comply with account creation limits.

These updates aim to enhance transparency and ad quality in Google Ads, ensuring fair competition and adherence to advertising policies.

This article is available in Ukrainian.