Introduction to Google Adwords Auction

I always get asked how Google’s Adword auction works. I have tried to explain in my way how quality score plays a very important role in what final price you have to pay for a click on your ad.

Here is Google’s Chief Economist, Hal Varian, as he explains how the auction works and how improving quality score can lead to lower cost per click.

The key point is that Quality Score is made up of three components:

  1. Click Through Rate (CTR)
  2. Relevancy of the Ad to the User Searched Keyword
  3. Landing Page Quality

An ad is only useful to the user if the landing page it leads to helps them find what they are looking for. A hight quality landing page should:

  1. have relevant, original content
  2. be easily navigable
  3. have quick load time
  4. minimum (none, if you ask me) popups or popunders
  5. be transparent about the nature of the business
  6. privacy policy

Watch the video and if you have any further questions or feedback, please use the comments section.

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Date
August 27th, 2009

Author
Adnan Ali

3 to “Introduction to Google Adwords Auction”


  1. PPC Tips says:

    I admire you for explaining the whole thing in such a simple way. You have done a great job of explaining google adwords auction with key points.

  2. Raheel jutt says:

    i have mane question. butt you not my approach



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