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The Google PPC Auction – How does it work?

The Google PPC Auction – How does it work?

The following video from by Hal Varian, Google’s Chief Economist, is a must watch video for anyone who wants to understand how Google decides which ads to display for any given keyword, what order the ads are displayed in, and how much an advertiser pays.       A quick summary:   The Auction – Every time someone searches for a keyword, an instantaneous auction occurs among the possible advertisers. Advertisers are initially ranked based on their maximum bid prices for the keyword in question.   Quality Score – Google looks at the historic click-thru rate, ad relevance and landing page relevance to determine a quality score for the possible ads in the auction.   Ad Rank – Google multiples the maximum bids prices by the quality score to determine an Ad Rank for each possible ad in the auction, this rank determines which order the ads will display in.   Final Price – To determine how much the advertiser will pay per click, Google divides the Ad Rank of ad below the current ad (or the minimum price set for the auction of there are now ads lower) and divides that Ad Rank by the current ads Quality Score to determine the actual click price.   The one thing I would have liked to have seen him explain is the Pre-Auction where Google looks at ads with the same display URL to determine which one of those ads will get to compete in the auction.  This “pre-auction” actually occurs after Ad Ranks have been assigned, and then all ads with the same display URL are compared to each other, and the...

Imwave Acquires Move Marketing

FOR IMMEDIATE RELEASE Adam J Viener 703.430.0422 adam (at) imwave.com AIM: AdamViener IMWAVE ACQUIRES MOVE MARKETING Reston, VA – November 7, 2008 – imwave, inc. announced today that they have acquired move marketing’s performance search marketing business.  imwave will immediately take over all of move marketing’s advertiser relationships and search engine marketing campaigns.  Andre Colantuono, move marketing’s business development Director, will join imwave as the director of business development. “Both imwave and move marketing have worked hard to build reputations as leading paid search marketing affiliates in the industry,” says Adam Viener, chairman and founder of imwave.  “We believe that this acquisition clearly solidifies our position as one of the largest super affiliates in the industry focused on paid search engine marketing.” “We are excited to have Andre Colantuono joining our team,” says Tony Pantano, CEO of imwave, “Being successful in this industry is primarily about building and maintaining successful long-term publisher / advertiser relationships.  Andre has been instrumental in building the relationships that have led to move marketing’s success and will be an important member of our team going forward.” imwave, inc. is one of the leading performance search marketing companies in the industry focusing primarily on building and launching effective pay-per-click search engine keyword marketing campaigns for companies paying affiliate commissions on sales and leads generated.  As of September of 2008, imwave announced they had served over 2 billion ads for their clients through Google...

Over 2 Billion Ads Served on Google!

I was looking over my Google Stats today an noticed that we have reached a major milestone, we recently served up our 2 Billionth Ad on Google!!! Since starting IMWave we have displayed over 2 Billion Ads through Google Adwords, received almost 25 Million clicks on those ads at a cost of just over $2.5 Million. Google sent us a refrigerator when we had served over 1 million ads, I wonder what 2 Billion should get...