If you work in the search marketing industry, you may have found yourself having a conversation somewhat like this one (the same conversation I have every time I tell a "regular person" what I do):
Regular Person: So, what do you do?
Me: I work as a writer for a software startup.
Regular Person: What kind of software?
Me: Um, search marketing software?
Regular Person: So ... like Google?
Me: Well, yeah, sort of. We make software that helps people advertise on Google.
If this regular person is curious enough to know more (rare), I usually find it helpful to explain that Google advertising functions similarly to an auction.
Since there are so many people out there who don't really know how this "AdWords auction" works, we thought it would be helpful to illustrate it. Below you'll find our latest infographic, "How Does the AdWords Auction Work?" This infographic illustrates how exactly the AdWords auction works, including:
- What gets entered into each ?auction?
- How Google determines which ads are shown where
- How Google determines what advertisers pay
And lots more interesting tidbits about how Google AdWords works. Click the image to enlarge.
This post originated on the WordStream Blog. WordStream provides keyword tools for pay-per click (PPC) and search engine optimization (SEO) aiding in everything from keyword discovery to keyword grouping and organization.
Source: http://www.wordstream.com/blog/ws/2011/11/16/how-adwords-works
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