Introduction to the ad auction

When we go to conferences or read posts in forums, we find that advertisers sometimes know more about advanced features than about the basics of how AdWords works. So, weve decided to take some time to get back to basics and talk about how the AdWords auction actually works. To help you, weve brought along our Chief Economist, Hal Varian, to walk you through the auction and explain how your maximum cost per click bid and Quality Score determine how much you actually pay for an ad click on Google’s search results pages.

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