AdWords, the most popular PPC advertising platform, is a complicated system, but it many ways it functions similar to an ordinary auction. The infographic provides a great visual aid in helping those with little or no knowledge of PPC understand the AdWords bidding process.
What’s interesting to note is that advertisers with high Quality Scores can outrank and pay quite a bit less per click than advertisers that place much higher bids. This is because Google cares so much about relevance—by delivering more relevant, useful ads, Google ensures that more searchers click those ads.
This makes both search engine users and AdWords advertisers happy, and increases Google’s huge profits from AdWords. (Advertising revenue makes up 97% of Google’s total revenue!)”
This post is a guest post by our Adword Expert friends at @wordstream.