Introduction to Google Adwords Auction
To promote our online business, we have several options; but the most used one is Google Adwords. Google Adwords basically is an ad auction system which allows you to bid on certain positions. Here is a video in which Hal Varian, the chief economist from Google, shows us how ad auction works and how a bid increase by one advertiser can affect the advertisers bidding above him.
It is a great video for us to not only understand how Google Adwords works, but also know why sometimes we, as publishers, experience dramatic changes in ad income.
