[Wordstream] INFOGRAPHIC: What Is Google AdWords and how the AdWords Auction Works

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On this subject, here is an article about Adwords.

What is Google AdWords?

What is AdWords? Google AdWords is Google’s advertising system in which advertisers bid on certain keywords in order for their clickable ads to appear in Google’s search results. Since advertisers have to pay for these clicks, this is how Google makes money from search. This infographic will help you understand how AdWords works, detailing the AdWords auction, bidding process and explaining important factors like Quality Score and cost-per-click. If you’re asking “How does AdWords Work?” this infographic is for you!

Does AdWords Work?

Does Google AdWords work? Depending on the competitiveness of the keywords you’re bidding for and the relevancy of that keyword to real conversions for your company, AdWords may or may not work for your business. For the most part, we’ve found that Google AdWords is extremely effective for many kinds of businesses, as long as they don’t waste their money on the wrong keywords, or write weak, low CTR ads.

How much does Google AdWords cost?

Many factors can affect the costs of AdWords for your business. Learn all about these costs, how bidding works, and the average cost per click for advertisers in our guide to “How Much Does AdWords Cost?”

How to advertise with Google AdWords

Businesses can advertise on Google by opening a Google AdWords account.

How does AdWords bidding work?

The actual position of your ad is determined by your ad rank (Maximum Bid times Quality Score). The highest ad rank gets the 1st ad position. Your actual CPC will be determined by the ad rank of the next highest ad below you divided by your Quality Score. The only exception of this rule is when you are the only bidder or the lowest bid in the AdWords auction; then you pay your maximum bid per click! AdWords bidding heavily penalizes advertisers who bid with low quality scores. Conversely, those with high Quality Scores get higher ad ranks and lower CPC.

How many times does a Google auction run?

The auction gets run billions of times each month. The results are such that users find ads that are relevant to what they’re looking for, advertisers connect with potential customers at the lowest possible prices and Google rakes in billions of dollars in revenue.

How does the Google auction work?

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