Last night I was wondering about my Google PPC ads and why my buddy was paying less per click than I was. We’re marketing in the same niche and I couldn’t quite understand the disparity. Then low and behold I get a link from a friend today on “Quality Score” and what determines your click price.

If you’re trying to make sense of PPC and how it works, listen to this brief video from Google Chief Economist, Hal Varian, who explains the AdWords Ad Auction and how your max CPC bid and quality score determine how much you pay for a click on Google.com. More importantly, Hal specifically mentions which factors determine your quality score – definitely worth the next 9 minutes. Be sure to retweet and share with your marketing buddies…

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