Google Releases Video on 'Introduction to the ad Auction'

Mar 13, 2009 | 1,415 views | by Navneet Kaushal
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Google has recently come out with a video to help all of us understand the basics of how AdWords auction works. According to the Official Google Blog:

"We've decided to take some time to get back to basics and talk about how the AdWords auction actually works. To help you, we've brought along our Chief Economist, Hal Varian, to walk you through the auction and explain how your maximum cost-per-click (CPC) bid and Quality Score determine how much you actually pay for an ad click on Google's search results pages."

Have a look at this video:

"When people think of an auction, they often think of a prize being sold for the highest bid. But the AdWords auction works a little differently, where the winner only pays the minimum amount necessary to maintain their position on the page. That means you'll only pay the minimum necessary to beat the person below you. In fact, our quality-based pricing system ensures that you'll often pay less than your maximum bid." – Austin Rachlin, Inside AdWords crew

4.thumbnail Google Releases Video on Introduction to the ad Auction

Navneet Kaushal

Navneet Kaushal is the founder and CEO of PageTraffic, an SEO Agency in India with offices in Chicago, Mumbai and London. A leading search strategist, Navneet helps clients maintain an edge in search engines and the online media. Navneet's expertise has established PageTraffic as one of the most awarded and successful search marketing agencies.
4.thumbnail Google Releases Video on Introduction to the ad Auction
4.thumbnail Google Releases Video on Introduction to the ad Auction