Google Ad Auction and Quality Score

March 30, 2009 · Filed Under Advertising

Google Adwords Auction

Do you use Google Adwords? Have you ever wonder just how the hell Google calculates the cost per click (CPC) that you pay? I know I have. One day it costs me $0.12/click and the next it’s $0.20 for the same ad.

Well, Hal Varian, chief economist for Google has taken to YouTube and explained the whole thing so that even a dumb ass like me understands it. Using a whiteboard and magnets he walks you through it explaining the relationship between what you bid, the quality of your ad and its keywords, the quality of the landing page and the click through rate (CTR).

Watch this short video and you’ll be an Adwords expert, almost.

Introduction to the Google Ad Auction

If you are an Adwords advertiser shouldn’t you know how the charges to your account are made?

(1 votes, average: 5.00 out of 5)

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10 Total TweetBacks: (Tweet this post)

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en: @EuropeanCitizen The answer is 'no, of course it doesn't preclude x, y, or z - but you'd have to be an idiot to think it *promotes* them' 07/14/09 07:31pm
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