Google AdWords Bidding Tutorial

Our Chief Economist, Hal Varian, explains the how to adjust your bids to maximize the profit from your marketing investment on AdWords.
Video Rating: 4 / 5

21 thoughts on “Google AdWords Bidding Tutorial

  1. 1:55 he starts doing the ROI Math. It’s wrong. He says 100 clicks = 5 sales. Real numbers are at 500 clicks = 1 sale. source: /watch?v=0JK-2W7mtiw

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  4. Hi – the profit maximizing point is where the marginal cost – ie the cost of ever extra transaction, is equal to the marginal revenue. What he is trying to show is how to calculate the marginal cost – and therefore maximise profits. if you were to make your AVERAGE cpa equal to the revenue, then you would basically spend all your profit with Google – hope this clarifies.

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  8. No doubt Hal Varian offers step by step bidding tutorial that helps me to understanding how that works but the issue is they want to say that $5 per conversion earn and on the basis of that the revenue they calculate is 1040?

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