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Home > Internet Marketing > Google Adwords Web Advertising > How Adwords Auctions Work

How Google Ad Auctions Work

• Google Adwords Overview

• How Google Sets Ad Prices
  

• Site Selection with Demographic Selection

• High Satisfaction Marketing

• Google Adwords Performance Eye-Opener

• Writing Google Adwords Ads

• Landing Page Design

• Improving Conversion using Parameters

• Google Analytics Help

• Seth Godin Google Video

1. Each advertiser sets up a campaign, enters keywords, ads, and bids.
2. When a user does a search, Google builds a list of ads that match the search query.
3. The list of ads is sorted by bids and quality scores, which are meant to improve the relevance and the "experience" for the user.
4. The top ranked ad is displayed in the highest position, the second highest ranked ad gets the second position, and so on.
5. If the user clicks on your ad, you are charged a price determined by the bid and Quality Score of the advertiser below you.
6. The price charged is the minimum value needed to retain the advertiser's position in the list.
7. Google runs two auctions - one for the top and one for the side. The top quality score ads compete for the top, while the rest compete for the side of the results page.

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