Google Chief Economist Explains Adwords Pricing

This easy-to-understand video shows how the Google Ad auction process works to determine what advertisers pay for Adwords Ads.

Google’s Chief Economist, Hal Varian, explains the AdWords Ad Auction and how your max Cost Per Click (CPC) bid and Quality Ccore determine how much you pay for a click on Google.com.

Introduction to the Google Ad Auction

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