Tuesday, December 6, 2011

How AdWords Works

How exactly does Google make money on its AdWords and who determines which ads go where and what they cost?

The answer is pretty complicated, as illustrated in this infographic from WordStream.

"Millions of web advertisers really don't understand this," WordStream founder Larry Kim says. Um, yeah, no wonder they don't understand it! Whew ...


  1. I'm glad you mentioned this. I get an email from AdWords every few weeks and I just nuke it. I have no idea how or why I'd use their ads. I tried them for a while and I think I made $16 over the course of two years. Maybe they need to uncomplicate this!

  2. Petrea, I had similar results with AdWords. The traffic needed to make it worthwhile is astronomical, no doubt. I think it would have to be a full-time job.