For example, let's take a search for the query

[rifat28dddd]

region of promotion (if a brand offers products in several regions, it is more profitable to do this separately).
What is VCG Auction
VCG auction is a Vickrey-Clarke-Groves auction that determines the cost of traffic volume in search and on search platforms of Yandex Advertising Account.

The price depends, in particular, on the predicted traffic that the system determines for each ad, taking into account its quality and bid. The higher the bid and the better the ad, the better its position.

The principle of operation of the VCG auction is that:

the system assigns a basic volume of traffic (65%) to all ads in the block. The advertiser pays for it at the price of the previous positions;
Additional traffic costs more. If an advertiser wants their ad to be higher than their competitors, they must pay an amount above their bid. How much additional traffic costs depends on the bid of the competitor whose ad is being broadcast below.
Based on the VCG auction principle, the system distributes impressions in the premium block, as well as the block under the search results, in the suggestion, product gallery and extended format.


Budget forecast from Yandex Direct: what is it, why is honduras telegram data it needed and how to use it - image 4
Let's show how places can be distributed between advertisers based on their bid. Let's say there are six advertisers with bids of: 3, 5, 6, 7, 10, 12 rubles.

The advertising block will contain four ads with the highest bids: 12, 10, 7, 6 rubles (at the same time, advertisers with lower bids - 5 and 3 rubles - will drop out of the search):

for basic traffic (65%) all 4 advertisers will pay 5 rubles per click. This will be the rate of the closest competitor who has left the system;
the advertiser who is on the fourth line in the advertising block will receive basic traffic (65%) and will also pay for each click at the basic rate (5 rubles);
the third advertiser will get 75% of the traffic. He will pay 65% ​​of it at the base rate, i.e. 5 rubles per click, and 10% at the rate of the closest competitor (6 rubles per click). In fact, the third advertiser will receive an additional 10% of the traffic that the previous participant did not receive;
the second advertiser will get even more traffic (already 85%). For 65% he will pay at the base rate (5 rubles per click), 10% at the rate of the closest competitor (7 rubles per click), and another 10% at the rate of a more distant competitor (6 rubles per click);