Google’s Hal Varian Explains How Adwords Works

Forget about naked ladies. This what passes for porn here at ChasNote headquarters: Hal Varian, Google’s Chief Economist, explains how Google’s ad auction creates relevant and high-quality advertising results by multiplying bid price (the maximum CPC the advertiser is willing to pay) with a quality score that takes into account click-through rate, relevance of the message and quality of the advertiser’s landing page.

  1. # Decky said: June 12th, 2009 at 1:23 am

    Google quality score (QS) is one of the most important metrics in AdWords and can be the most difficult to grasp since the big G never reveals the algorithm behind it. Google can ‘slap’ you with a low quality score without even knowing why.

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