Introduction to the ad auction
(Cross-posted from the Inside AdWords Blog)
When we go to conferences or read posts in forums, we find that advertisers sometimes know more about advanced features than about the basics of how AdWords works. So, 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.
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