How Google Adwords Auctions Work

Posted on 06. Apr, 2009 by Nikhil Sheth in Google, Knowledge

Google chief economist Hal Varian does the best job ever explaining the Google Adwords Auctions, AdRank, Quality Score and more.

He explains how quality score is affected by:

  • Clickthrough Rate
  • Relevance
  • High Quality Landing Page

He explains Adrank (Adrank = Max Bid * Quality Score) and what people pay for ads.

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