Great Explanation Of The Google Adwords Bidding Model
Ever wonder exactly how the bidding model for Google Adwords works? This is a video from Google explaining it, and it’s a really good explanation.
Watch this video on YouTubeOriginally embedded here · youtube.com/watch?v=K7l0a2PVhPQ
I totally agreed and as soon as I watched it this morning, I sent it to 10 other people. Great video, even for experts in adwords as a refresher.
Mother of god this should be thought in universities.
This is excellent – I’m posting it up on my blog now. Thanks for sharing Hustler!
Good video, but mmm… I don’t think that max bid is right. I was the only advertiser on a bunch of keywords and bid $0.30 since I thought there was no way I would be the only one.
I was humming along at $0.23 cpc but finally noticed the dearth of advertisers. I was position 1.0 every time, except when some moron must have broad matched their way into my keywords.
So, I dropped down to the minimum 1st page bid and – yep, still 1.0.
I know you know that, but for the noobs or those in more unusual markets…
@Matt – I dont think the video covers every situation, I think its just a broad explanation. For instance, keywords that have minimum bids aren’t covered here.
I highly disagree with him on one thing. Not every advertiser give a crap about providing relevant content to the user. They care about conversions whether its relevant or not (at least, affiliates do). This would only apply to real businesses (even then, only to some degree) and of course users looking for info, products, or services. For affiliates, at least the ones that are looking for money, you hear more of the disgruntle slaps than you do about providing relevancy.
@Steven – Your totally right, most of us couldn’t care less about providing quality content (including me – i’m paying for advertising not performing an act of charity). I care about conversions. The thing that’s good about this video is at least we can get a peak into their heads and see what the heck they are thinking so we can figure out a way to trick them 🙂 – Rock on Steven.