Wordstream released an infographic called “How Does the AdWords Auction Work?”. If you are new to the AdWords game this information could be very helpful to you. Some things that are explained:
- What gets entered into each “auction”
- How Google determines which ads are shown where
- How Google determines what advertisers pay
This may be an infographic you need to print and put up on your wall for reference.

Great infographic! Thanks for posting this simplified explanation.
Thank you for the info, I have just recently setup a Adwords account and didn’t know how it worked.
This definitely is something you want to print out on and put on a wall for future reference. Besides learning a few facts here, this infographic is so user-friendly it will help us communicate with our clients and explain these concepts easily.
Great job and thanks!
Didnt know that the quality score can affect the ranking too.
I think best is good related content plus highest CPC = Top position!