How Does the AdWords Auction Work? [Infographic]

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.

Melissa Fach

Melissa Fach

Melissa is the owner of SEO Aware, LLC. She is a consultant and trainer helping companies make the most of their content marketing and SEO. She specializes is the Psychology behind blogging and content marketing. Melissa is also an associate on the Community team at Moz, an associate and writer at CopyPress and an editor at Authority Labs. She is a self-proclaimed Star Wars and Internet geek and volunteers with big cats at
Melissa Fach

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9 thoughts on “How Does the AdWords Auction Work? [Infographic]

  1. 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!

  2. In my own opinion google adwords is an elegant system that rewards people that write good ads and punishes those who write crappy ones. In this way, no one can dump cash into an account and beart everyone out based on that mnetric alone. Unfortunately yahoo doesn’t work like that. If you have enough dosh in your wallet yahoo will hand you the keys to position 1 instantly (idiots). I hate yahoo.

  3. Melissa, The better the ad, the better your business will grow. Adwords is an elegant system that provides fairness on the level of ad performance. Thanks for the post it really helped me to understand this topic better.

    Thanks for sharing! :)>


  4. Good one Melissa this topic really grab my attention because I was hearing for long time about adwords but I was not exactly sure about how it goes.

    This assist me in great way and I will continue my adword account :)