What kind of auction does Google Adwords use?

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What kind of auction does Google Adwords use?

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Just out of interest, if you ever wondered about Google’s very interestingly, but seemingly complicated, form of auction used to bid and charge for Google AdWords, it is a form of ‘Vickrey auction’. That’s where you bid one amount but end up paying an amount based on the bid below yours’ value. In Google’s case they use a quality score so the higher the Click Through Rates for your ads, the higher you rank and the less you pay – so it is well worth putting effort¬†in to optimise your Google AdWords keywords and ads.

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2012-04-21T13:21:39+00:00 April 21st, 2012|News, Search Engine Optimisation (SEO), Web Hints & Tips|