What determines the price you pay for Google Sponsored Links?

January 13, 2007 2:51 PM

Is the price you pay for Google Sponsored links determined by simple supply-and-demand or is it determined by the the service/product being offered?
posted by jacobean to Computers & Internet (2 answers total)

I believe it's based on what other people are paying (S/D) with an algorithm to sort through and display the most "clickable" ad, not necessarily the highest bidder.

Here's an interesting page about adword redetermining adword pricing.
posted by mattdini at 2:57 PM on January 13, 2007

Some things they take into consideration are:

1) Demand and history (do most of the ads using that keyword seem trustful) of the keyword being bid on.

2) The page and entire site you are sending people too, the less "trustful" the site appears to google's algorithm, the higher the price.

3) Your account history with google (have your past ads been helpful/trusful?)
posted by Mick at 5:46 PM on January 13, 2007