How Adword auction on Google Adword work?

Estimated read time 2 min read

Google AdWord auction is a simple process of multiple companies bidding a budget or value for a specific keyword. Multiple companies belong to the same industry and sometimes they all are looking for the same keyword to increase their SEO rating through Google search. Adword auction occurs when more than one client wants the same keyword. In this case, an online auction is organized where the companies can bid for the keyword. The one who wins the bid will be able to use the keyword. Although it is for a specific period. After some time, the keyword can belong to someone else with a higher bid. Many such keyword auctions are helping every day on Google platform

How is the quality and rank of the keyword calculated?

Once the auction starts google check the maximum bid on the keyword and the quality (How many times it has been searched on Google search). Both these factors together determine the value and the rank of the keyword. The higher the rank, the higher the bod will be for it. The whole concept is based on the competitiveness of the keyword and the relevance of it in the internet search.

How is the cost calculated for a client?

A client can either pay the bidding value for the keyword directly or use a different method given by Google. Sometimes, payment on a keyword can be calculated on per click, per 100 impressions or full payment for a specific duration. The cost for Advertising with google Adwords (โฆษณา google adwords which is the term in thai) will depend on the number of people bidding for the keyword and the value or rank of the keyword.

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