Our Chief Economist, Hal Varian, explains the AdWords Ad Auction and how your max CPC bid and quality score determine how much you pay for a click on Google.com. … adwords ads google “google advertising” cpc “ad auction” “search ads” “text ads” “quality score” “hal varian” “paid search” “adwords auction”
Filed under:
all posts

Confirms that ‘Direct Linking” to CB hoplinks will only be good for 2-3 days until you validate the CTR is good enuff to build a LP and get a decent QS with relevant / new content, or am I missing something counter to GCD type programs?
Excellent Video … Google is not sinister after all
maybe i’m stupid but i can’t get anything in this video
I have learned allot from this video, such an excellent video for a noob like myself just stepping out into the world of internet advertising, thankyou for sharing it.
What happens if two advertisers have the same max bid and quality score?
This increased visibility into Quality Score has changes the PPC game. Adwords has jumped out of traditional marketing and has leaped head first into the science of PPC. Now that QS is out of the black box, one can learn what influences it and optimize to improve it per KW.
lol. Google is still not evil. Whew!
Most Informative and Educative tutorial by Hal Varian . The way of Instruction is very Simple and I understood the system of Google Ad Auction
Thanks for making Video
That guy at the beginning kind of looks like, Bill Gates. What do you all think?
Hal, please come to Miami Beach we want to party with you:)
yeah thats what Miami Beach thinks.
The one thing I would have liked to have seen him explain is the Pre-Auction where Google looks at ads with the same display URL to determine which one of those ads will get to compete in the auction.
I wish Hal Varian could make a video that shows users how quality scores decrease. Because that still remains a mystery. A lot of users use broad searches with low click through rates only to find their quality scores decrease – and they have no clue as to why google penalizes them. They then start to hate google and the adwords system and many leave. It took me 4 months on adwords to realise the deterioration of quality scores if I used broad matches to often.
Quality Score is indeed a crucial parameter for advertising on AdWords. Getting a high Quality Score may seem difficult, but it’s doable by having the right mindset which is providing relevant ad to the end user.
This video was quite informative and explains the basics of different terms on AdWords. Thanks a lot Hal Varian and the Google Business Team. Just keep up the great work!
Sincerely,
Hooshmand Moslemi
haha! Definately a microsoft type of guy. Should be in those ads for Mac.
Great Instructional video!
The major problem with this model is that it favors well-known, established, recognizable brands. Because CTR is over 60% of Quality Score and because famous brands have higher CTR’s due to brand recognition and established trust (not ad relevance) they are given an unfair advantage over other less-known advertisers.
excelente explicacion. thanks!
opensourcefilms,
That is not a problem at all, given users are more interested in results from big brands they know of than unknown brands..
great video. very well explained!
Thanks for this great video!! It will help me explain to my clients even better how the auction works! Great work!
Quality score is heavily determined by CTR., so guess what happens if your CTR diminishes?
Brilliant explanation on how Adwords ranking and pricing works. Simply brilliant!
wow i bet this guy is one rich mofo. BE warned people google adwords makes alot of money for google. You will make zero to none.
why is this guy wearing a bill gates uniform? lol