A Study of Working of Ad Auctioning by Google AdWords

The globe is migrating toward World Wide Web (WWW). Any task which is required to be performed manually is slowly moving toward web application. The web applications have emerged from simple static client side HTML pages to the complex word processors. Hence, the advertisers are also slowly transforming from their offline advertising to online advertising. Online advertising is helpful to the advertisers as it is behavioral advertising, i.e., tailored to the likely interest of the users. There are various services that offer online advertising, but here we will be focusing on Google's online advertising which is AdWords. AdWords have become the prime source of revenue for Google as the total advertising revenue from AdWords were $43.7 billion in 2012. AdWords uses specific organization to help the advertisers, and second prize algorithm which is beneficial for the advertisers as well as the users.