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.
