Google AdWords will consider your ad for DoubleClick Ad Exchange when your ad is contextually relevant (for keyword-targeted ads) or placement-targeted appropriately. Here's how Google AdWords works with DoubleClick Ad Exchange to promote a consistent auction process:
- Publishers offer inventory to DoubleClick Ad Exchange.
- DoubleClick Ad Exchange requests the first- and second-highest qualified AdWords bids (on an eCPM basis, and modified by Quality Score), which are reduced by the Google AdWords revenue share. (This reduction means AdWords bids can be compared fairly with bids from other ad networks that take into account their respective revenue shares.)
- The net values of the two highest AdWords bids are compared with other DoubleClick Ad Exchange advertiser bids and DoubleClick Ad Exchange publisher minimum CPMs. Bids below the minimum CPM are ignored.
- Qualified bids from other DoubleClick Ad Exchange advertisers, the two highest net bids from AdWords, and the publisher's min CPM are then reduced by the publisher's revenue share.
- If the publisher uses dynamic allocation (a DoubleClick Ad Exchange feature that automatically allocates ads to the sales channel that pays the most), the net values are treated as other bids and compared with values from ads in the publisher's ad server.
- The highest bid (which could be the publisher's min CPM or an ad from the publisher's ad server) wins and is charged the gross rate of the second-highest bidder. If the winner is from AdWords, the reduced rate (from step two) is adjusted back up to the amount before the AdWords revenue share was taken.
Note: The combined Google AdWords and DoubleClick Ad Exchange revenue share is designed to approximate the revenue share associated with advertising on Google AdSense sites directly.
