Search Ads with Google

How it works

  • Every time for a search result, it will do an auction to price different ad locations. The advertiser would need to pay only if the user clicks the ad.
    • When the user clicks, the advertiser only needs to pay second-highest price.
    • This can guarantee that they bid their true value.

Quality Score

  • Click through rate
  • Relevance
  • Landing page 

Ad Rank

  • bid price * quality = ad rank

Cost Per Click (CPC)

  • price to pay by each client in the rank list
  • p1 = p2*q2/q1
  • the last one in the rank list pay the minimum price

Reference

Leave a Reply

Your email address will not be published. Required fields are marked *

*