On this blog and with actual businesses in the real world, I’ve been talking a lot lately about pay per click marketing and how important it should be to practically anyone doing business online. And as I always say in those discussions I find Google fascinating as a business model because nobody really knows how they price their main product which, of course, is Google Adwords.

Well, lo’ and behold, Google must have heard me because they recently came out with a video that does a very good job of explaining how they price their ads and what we, as customers, can do to lower our costs and improve our results.

What I enjoyed most was finding out just how much importance Google puts on click-through rates. This makes sense as Google has always been consistent in saying that above all else they want their ads to be relevent to their visitors. The more often an ad is clicked on the more “votes” it gets and Google sees this as a sign of quality.

I am the first to admit that only geeks will likely find this video interesting and it seems that I am becoming more and more of a geek every day. But that is ok, I guess. One needs to keep up to date with things that are important, right?

The video is almost 10 minutes long but it does a great job of explaining what Google is actually looking for. Enjoy.