WashingtonPost: To Place Ads, Google Searches For Best Bidders
The Washington Post published a piece explaining the mechanics behind Google's AdWords program, but the story misses a key piece. Google has set up their system to truly find the "best bidders." That isn't the same as the highest bidder. The best bidder will often have compelling creative and a strong branded URL, elements that the searcher likes to see. The more searchers click, the more Google rewards that bidder with increased relevance rank boost. Google's AdWords algorithm measures the effective CPM for all ads and rotates the ads to maximize revenue while also maximizing the search experience.
