Are Your Google Ads Campaigns Bidding Against Each Other?

By: Jyll Saskin Gales, Google Ads Coach

Have you ever wondered if using duplicate ad groups or duplicate keywords actually drives up your own advertising costs? The fear is that by having duplicate ad groups, you’re essentially creating your own competition, causing an internal bidding war that inflates your cost-per-click (CPC). It’s a logical assumption, but is it accurate?

Understanding how Google’s auction system really works is key to optimizing your campaigns and using your budget effectively. In this article, we'll set the record straight on how duplicate ad groups and keywords function within your Google Ads account. We’ll clear up some common misconceptions and give you the confidence to structure your campaigns for success.

We'll cover:

• The truth about whether duplicate ad groups bid against each other.
• The indirect ways that duplicate ad groups can affect your CPCs.
• How an internal "audition" process determines which of your ads shows.
• What the recent changes to Google's ad policy mean for your campaigns.
• Clarification on whether you can truly "double-serve" ads on the same page.

Are Your Ad Groups Competing Against Each Other?

Let’s tackle the big question head-on: If you have two ad groups that are essentially duplicates (same keywords, same ads), are they bidding against each other and driving up your CPCs? The short answer is yes, they compete, but no, this doesn't directly increase your CPCs.

Think of it like an audition for a play. Your Google Ads account is the casting director, and your various ad groups and keywords are the actors all vying for the lead role. Before the big show (the actual Google search auction), there’s an internal selection process. When a user types a search query, Google doesn't throw all of your relevant keywords and ads into the ring at once. Instead, your account holds its own private audition.

Your two duplicate ad groups will compete against each other, but only one will be chosen to represent your account in the main auction against other advertisers. This means you aren't bidding against yourself in the public marketplace. Your account selects the best candidate to move forward.

This same principle applies if you're running different campaign types, like Search and Performance Max. They’ll have their own internal audition, and only the winner proceeds to the main event.

So, you can breathe a sigh of relief knowing you aren't in a bidding war with yourself. However...

The Hidden Costs of Duplication

While you might not be directly bidding against yourself, having duplicate ad groups isn't without its consequences. The real issue with duplication is that it fragments your data and dilutes your learning data.

Imagine you have two identical ad groups. Each time one of them wins the internal audition and enters the auction, it gathers valuable data. It learns what works and what doesn't. It accumulates clicks, impressions, and most importantly, conversion data. When this information is split across two different places, it’s like trying to fill two separate buckets out of the same faucet, instead of filling one big bucket quickly.

Each ad group is learning independently and slowly. It will take longer to fill them each up. This inefficiency can indirectly lead to higher CPCs, because your campaigns will make less effective bidding decisions with only half the data.

A single consolidated ad group with all the historical data and learning in one place is much more powerful. It allows Google's algorithms to make smarter, more cost-effective decisions, ultimately leading to a lower cost-per-acquisition. So, while you aren't directly inflating your bids, the disorganization can still cost you in the long run.

A New Twist: The "Unfair Advantage" Policy Update

You may have seen some headlines recently suggesting that Google now allows "double-serving," meaning you can show two of your ads on the same search results page. This isn't quite the full picture, and it's important to understand the nuance. 

Google has updated its "unfair advantage" policy, which changes how ads are displayed. Think of the search engine results page (SERP) as having two distinct auctions: the top of the page and the bottom of the page. In the past, this was all considered in the same auction, so if your ad was shown at the top, you were ineligible to also appear at the bottom - it was all the same page.

The recent change means that the top and bottom of the page are now treated as separate "pages" with their own auctions. As Google now says, "We run different auctions for each ad location." This means that an advertiser who secures a spot in the top ad section can now also participate in the auction for the bottom ad section.

So, is it possible for your ads to appear at both the top and bottom of the same SERP? Yes. Does this mean you are "double-serving" in the traditional sense of bidding against yourself? No.

Google has been very clear on this point: "Advertisers will continue to never bid against themselves." You are still only putting one ad forward in each respective auction. You're not competing against yourself for placement; you're simply eligible to win a spot in two different locations on the same page.

This is a subtle but important distinction. It offers advertisers more opportunities for visibility without compromising the core principle of the ad auction. So, while the landscape has shifted slightly, the fundamental rule remains: you are not your own competition in the Google Ads auction.

By understanding these mechanics, you can structure your account more effectively, avoid the pitfalls of data fragmentation, and make your advertising budget work smarter for you.