Google has a great ad auction program that allows website owners to bid on the CBC in an auction style. It is a very neat concept. Your bid and ad quality score will determine what you pay per click. The crux of this concept is to help users and advertisers come together while Google will provide the best experience for both, so that people will keep using this system. For advertisers, it is a great way to promote traffic and pay-per-click to your website. Check out the video:



This should help you understand how the Google Adwords auction works. You can get more “bang for your buck” just by learning and applying what you have seen.