Our Chief Economist, Hal Varian, explains the how to adjust your bids to maximize the profit from your marketing investment on AdWords.

Share and Enjoy:
  • Print
  • email
  • Add to favorites
  • Facebook
  • Twitter
  • LinkedIn
  • MySpace
  • Yahoo! Buzz
  • Google Bookmarks
  • Google Buzz
  • Digg
  • StumbleUpon
  • del.icio.us
  • MisterWong
  • NewsVine
  • FriendFeed
  • Diigo
  • Netvibes
  • Suggest to Techmeme via Twitter
  • Plurk

25 Responses to “Google AdWords Bidding Tutorial”

  • Did the Chief Economist of Google really just say that $4.50 + $4.80 = $10.30?!?!?!?

    Google’s making it so fast they forget how to count…

  • Great work. If you need any advice with your Google AdWords campain, please feel free to visit our website on :


  • Great work. If you need any advice please feel free to visit our website on :

  • great video

  • This video has some great tips, check out my blog for more tips on Adwords and feel free to comment.

  • in this example Google is making over 20% of the sale. Pretty nice margins for Google for doing Nothing

  • @cabbagedavidge – about the figures. You have a max bid on $5 but that is not your actual cost. Your avg. cpc is 3.35 which is the amount you times with numbers of clicks. Which gives you the exact cost

  • Only question, on the graph where you show bid $5 – Clicks 208 – Cost $697.42 etc How did you arrive at the figure of $697.42?
    Thanks for any help with this.

  • Your presentation was a great way to help understand. Thanks for such clear easy to follow explanation. I have grappled with trying to understand Adwords bidding, you have now made it so much easier.

  • Great Video,

    Get Free Targeted Visitors To Your Ad

    Or Website Click My Channel

  • Because you’re a broke ass fool

  • 4 dollars for one visitor? lol i’d pay like a penny haha

  • Make FREE MONEY Online!
    New Opportunity!
    go to
    easygoldmoneyfast . com

  • There is a reason why that comment was deleted. Why don’t you address how you’re making a profit if you are paying $100 per conversion at a sale price of $300, and your wholesale cost is $200. Address that.

  • I read your other comment, and you clearly understand the video less and less the more you watch it. None of the statements are contradictory. You rarely pay the full maximum CPC bid for a click, which is why when you bid $5 you would at worst break even, but probably turn a profit. This is not contradictory to saying that if you paid your full CPC max bid of $5 you would be breaking even.

  • This is just a semantic question – Hal is calling revenue the money you generate from the sale before you factor in the cost to you for the advertising

  • Paying up to $100 for each conversion would lead to a break even scenario. He says at this point you can still make a profit on the sale. I highly doubt this guy works at Google, they wouldn’t hire someone this incompetent.

  • Revenue is $300, not $100.

  • if the CPA is 100 $ how did you make profit on that sale ? in the first simple example ?

  • I don’t see where the “cost” value comes from if you haven’t actually done it at the CPC value. Does this mean that before applying this you have to run the auction at each value level?

  • Im a PC!

  • that is true

  • google bunch of robbers

  • consigli molto importanti da ascoltare con attenzione e mettere in pratica… e poi si ottengono grandi risultati……

  • Wow, so in this example google makes more than the guy selling it!


The owners of this website are participants in the Amazon Services LLC Associates Program, an affiliate advertising program designed to provide a means for sites to earn advertising fees by advertising and linking to Amazon properties including, but not limited to, amazon.com, endless.com, myhabit.com, smallparts.com, or amazonwireless.com. To read our full endorsements policy (including other suppliers) please see our "Endorsements Policy" document

© 2013 Affiliate-Journal.com - All Rights Reserved