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I found out an interesting little nugget of information about Adwords the other day. Your placement ranking is based on a quality scoring algorithm, instead of just your bids. Here is the super complex Google algorithim, which has recently been leaked:
When I mention to people that I work in web development/design, A common conversation comes up. People tell me they have a cool idea for a website, and it becomes apparent that they really have no idea what it takes to start a website. This is the way people think websites work:
Link to the original article
After talking to some friends, and reading some forum posts about this particular issue, I wanted to write a follow-up to this article.