Fundamental economics of the Adwords ad auction

Aug 04 2010 Published by under Online advertising & PPC, SEO/SEM

If you’re starting with Adwords, it won’t be long before you wonder how the nuts and bolts of the pay per click (PPC) pricing mechanism fit together. What this video lacks in pizzaz, it makes up for in content. It’s 9 minutes of your life but if you’re a client using PPC advertising (or need to explain the Adwords fundamentals to a client) it’s a must watch.

The only small comment I would make is that I believe the price paid is actually 1p (or $0.01 in the US) higher than the bid that’s been beaten rather than exactly the beaten bid price as Hal says. See more detailed info on the Google Help page about what you pay on Adwords.

Use your own domain for OpenID

Creating accounts and remembering passwords for every site you visit has always been a major pain. A simple way around this issue is OpenID. This technology allows you to use a single account to control access to lots of sites in a secure way.

You probably already have an OpenID account but just didn’t know about it.

Keep reading and watch a quick video to see how easy it is to set up…

Adwords advice