Google AdWords Bidding Explained – Finally!

by Josh Todd on March 31, 2009

There has always been an element of mystery to bidding for keywords on Google AdWords.  Finally, Hal Varian from the mighty Google speaks out on our behalf with this clear and concise video to explain exactly what happens when you bid on a keyword and how the ads are ranked.  If you haven’t seen this video yet, you need to take the 9 minutes and 12 seconds it takes to watch it.  If you spend any money on Google AdWords at all, it will be worth it.

See, I told you so!  Now go make some money.

{ 12 comments… read them below or add one }

Sohan March 31, 2009 at 6:00 am

Now we need one for content network

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BR March 31, 2009 at 6:19 am

Great video, it's amazing how long some people go without truly understanding the fundamentals.

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Cisco March 31, 2009 at 11:56 am

Great stuff that was very informative, been reading your blog for some time now and all is very good content thanks so much for that.

Cisco

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Odzyskiwanie Danych April 20, 2009 at 1:04 am

interesting. from my side i can tell that google AdWords is realy great advertise system

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Sensual photography May 13, 2009 at 2:26 am

For a company, which is better for search words to advertise: Yahoo or AdWords? Which is better in terms of quality, price, etc? I would like specific answers and references to places where I can get this info if you don't mind please.

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Josh Todd May 13, 2009 at 4:52 am

They are both good, but AdWords has the majority of the volume.

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king affiliate May 19, 2009 at 5:02 pm

Yeah….great video. thanks for sharing, I will use the google adword for first

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Odchudzanie May 19, 2009 at 10:50 pm

Knowing google they'll probably change the strategy soon. They always keep everything a secret so that people don't exploit it too much.

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Don June 4, 2009 at 11:09 am

Great explaination , Thanks Hal

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svox June 16, 2009 at 4:28 pm

Thx for sharing that. Just a guess.The whole ads block effectiveness might also depend on the natural SERP for the same keyword. I never heard of google to let out dependancy between these two but crappy serp definately increases ads CTR or even the QS could be determined comparing top organic search results against ads somehow. Serp always benefits with various presentation advantages and I think ads block QS maybe rewarded with some extra points to make it more competitive, like less price. It seems like what he says is just the top of the iceberg.

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Odzyskiwanie Danych June 18, 2009 at 3:45 am

Gotta use this knowledge till we can because as soon as google updates its algorythms it’ll be all for nothing. But it’s nice that someone’s finaly figured it out.

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India Social Media O August 4, 2009 at 3:15 pm

I never heard of google to let out dependancy between these two but crappy serp definately increases ads CTR or even the QS could be determined comparing top organic search results against ads somehow.

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