How does Google AdWords Auction works

Now that you know how Google makes money. Let us move on and check out how Google AdWords auction works. Check out the infographic below for a clear picture of how Google AdWords auction really function. Basically instead of auctioning physical products, advertisers are bidding on keywords for a spot to advertise on Google search engine, blogs and websites. Instead of fixing a price for an advertising spot, Google decided to let advertisers determine the price by using auction. Advertisers will compete with each other for the best advertising spot. This way Google does not have to worry about maximizing profit as advertisers will be doing it constantly through auction.

how does google adwords auction works

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