Understanding Google’s Ad Auction

With Mother’s Day coming up and every florist facing the prospect of the long wait between the May and December holidays, it’s become more important than ever for florists to capitalize on every effective marketing channel available to them. Pay Per Click marketing can make or break a holiday, and it’s recently become just a bit more complex than ever 🙂

In the early days of PPC, Overture, then AdWords, relied on an auction model: the more you bid per click, the higher your placement. Positioning your ad correctly was just a matter of tweaking your budget accordingly. More recently, the search engines have added a Quality Score factor into the equation. They would rather take less money per click if it means showing ads that get clicked more often. Relevant ads are rewarded with lower bid rates while the search engine gets more money overall as a result of the increased click volume.

Understanding the Ad Auction system isn’t easy, but in a recent blog post the smart folks at ROI Revolution are doing what they do best – taking the complexities of search marketing and distilling them into digestable facts. Did I mention there are pictures? And a video from a Google engineer?

This relatively short article is worth a read, and I defnitely suggest watching the video.

1 thought on “Understanding Google’s Ad Auction”

  1. Thanks for the link to a very, very good post! I’ve learned a lot about how Google determines how much an advertiser should pay to get a certain spot among Google’s ads. It seems so long since I was using Overture for keyword research… How much has changed since then!

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