Having made it to the final round of interviews with Google last semester for the position of Online Sales and Operations Coordinator, I have found the past several lectures on keyword-based advertising particularly interesting.  Before flying to the offices in Mountain View, Ca I tried to get thoroughly acquainted with AdWords program.  That was when I discovered Google’s “AdWords Learning Center“, a lessons catalog that anyone with questions about the AdWords program can reference.  

Basic Definitions introduces users to some of the terms that have come up again and again in class (e.g., “Cost-per-click (CPC)” , “Clickthrough Rate (CTR)”, “Quality Score (QS)” ) and seeks to clarify the relationship between them.  The class handout on keyword based advertising assumes that the position of the ad is the primary determining factor in CTR, and since CTR is highest for the ads at the top of the search page, these ads will be the most expensive to place (Price= CPC*CTR).  It must be noted however that in practice the price is more complicated that this to calculate, since Google places heavy emphasis on Quality Score.  As noted on the definitions page, QS is determined largely by CTR and the relevance of the ad text; the higher the CTR and the more relevant the text, the lower the minimum bid and price  per click.  It is counterintuitive that a higher CTR could result in a lower price, yet it makes sense: a higher CTR means more people are clicking to view the ad. Since advertisers pay Google on a Cost-Per-Click basis, this means increased revenue for the company.  At the same time it creates synergies for the advertisers, since a higher CTR means that more potential customers are choosing to view the ad.  

Although the process of selling AdWords slots is highly automated, Google also has a large army of AdWords Coordinators, who work with advertisers to help them meet their advertising goals by providing excellent customer service,  reviewing ads and keywords for quality and accuracy, troubleshooting, and optimizing advertiser keyword lists and ads in order to maximize their return on investment.  If you are curious, check out this page of Google Jobs to see the positions for new graduates.  The interviewing process itself was quite an experience!