Google Ad Auction

    One of the most frequent questions I get from family and friends is how the heck does Google make money. Watch the video on this linked to blog post for a great explanation of Google's ad auctioning process.

Incidentally, Hal is one of the most brilliant folks working at Google and I never miss a chance to hear him talk.    

Official Google Blog: Introduction to the ad auction 7:43am

Source: googleblog.blogspot.com

When we go to conferences or read posts in forums, we find that advertisers sometimes know more about advanced features than about the basics of how AdWords works. So, we've decided to take some time to get back to basics and talk about how the AdWords auction actually works. ...