Google Adwords Explained – How Ad Auction Bidding Works

April 2, 2009 by Erich Mosier  
Filed under Adwords & PPC

Google Adwords is a major money making avenue for many internet marketers.  Combining PPC with CPA offers can be extremely lucrative.  I know several people that are making well over 5 million a year just using CPA and Google Adwords.  But unless you have done it for a while, it is not exactly clear how to determine how much you should be paying for each click.

If you currently run Adwords ads, or are planning to, here is a great explanation of how exactly the the CPC (cost per click) prices are determined.  It involves a combination of the Max CPC bid, quality score, and other factors.  It really makes more sense when you see it rather than me trying to explain it.  So watch the video below of Hal Varian, Googles Chief Economist, as he explains the how’s and why’s of what you pay per click in Adwords.

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Comments

7 Responses to “Google Adwords Explained – How Ad Auction Bidding Works”
  1. Excellent video. The great thing about CPA is that you can use Google Adwords that have Zero competition costing you 10 cents.

  2. detoxtechno says:

    Adwords is really great for promoting your website and also affiliate links. i have just passed the Google Adwords Professional exam today and i am very happy.

  3. ElectroGeek says:

    Thanks for sharing
    i was planning for adwords

  4. Rosie Nanna says:

    Adwords is really good in driving traffic to your website. however, they are very strict right now and they would not easily approve websites that they thought have low quality content. -

  5. Jasmine Ward says:

    it is really hard to build massive traffic on a website. you need to promote your website by blog commenting or PPC advertising:~:

  6. I love to attend and buy some stuffs during Auctions, you can really get some nice stuffs in there.*;:

  7. Pay Per Click programs these days are very popular and you could earn money from it.-,”

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