Google has produced a very useful video discussing exactly how the AdWords auction process works.

Hal Varian, AdWords Chief Economist, is like your favourite uncle sitting down and calmly explaining why there really is no need to be worried about AdWords, and this is exactly how it works.

Designed for folk who might be new to Pay Per Click, I reckon even experienced PPC marketers should settle down and relax for the 9 minutes and 12 seconds it takes to Hal to explain how ads are ranked, how prices are calculated, and how your bid price and Quality Score influence how much you pay per click.

Learn more at the Google AdWords blog


0 responses to “How Does AdWords Auction Work?”

  1. Dan PPCPROZ says:

    Do you think the pie chart of Quality score is accurate?

    * 60% CTR (“user feedback”)
    * 30% Adwords Account Architecture (“relevancy”)
    * 10% Landing Page Factors (that’s all? -WTF)
    * Assuming Hal’s pie chart is accurate:

    Landing Page Factors (only 10%) includes: relevancy of landing page, original content, easy navigation, transparent ie. privacy policy page, load time, contact us page, little use of pop ups/unders, and more? Relevancy of the landing page is only one of many components of the landing page formula, did you catch that? We don’t know exactly how much power this carries, but my guess is 30-50%.

    If that is true:

    Landing page relevancy influence over overall Quality Score accounts for only 5% of Quality Score?!

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