One of the most common questions asked by clients when reviewing their AdWords campaigns is how does Google work out how each click costs? Is it just a simple auction with the highest bidder paying most.
Well the simple answer is “No”, it is a lot more sophisticated than that….
The Google Chief Economist – Hal Varian, has created an excellent short video which explains how the ‘Google Ad auction’ works, and why effective campaign management can lower the price you pay for clicks.
