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Google Explains Ad Auction Model

March 13th, 2009 No comments

I know a ton of other bloggers have blogged about this, but I was really impressed by the recent video from Google explaining their ad auction model. Very simply and clearly the components of Quality Score are explained, and their relative weight, as well as how calculations of rank and ultimate CPC paid are derived. Kudos to Hal Varian, an economist after my own heart, for doing such a nice job.

So watch it already!