What Is Google AdWords? How Does the Auction Work?

A lot more people than I would expect say to me “Steve, exactly what is Google AdWords, and how does the whole thing really work?”. This also includes some agencies and web companies I’ve met, so it just shows you if they are are not 100% sure, businesses must really struggle to get it!

It bugs me when I hear stories from clients about what they have been told in the past by some of the less reputable Adwords businesses operating in the industry. They are fed all sorts of rubbish from some of them, and the poor old client is none the wiser! People have the right to know the truth, but too often I hear that the sales person is not being totally transparent, they sign the client up and off they go, on to their next victim.

So to help clarify: 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.

I found this great infographic below on the Wordtracker site. It will help you understand how AdWords works, showing the details of the AdWords auction, the bidding process and explains the important factors like Quality Score (QS) and Cost Per Click (CPC). I think it does an excellent job of explaining the fundamentals of how Adwords works.

So if you’re asking yourself “How do AdWords campaigns work?” – this Adwords infographic is definitely for you!


Reference: www.wordstream.com