Google Adwords is one of the Internet’s big mysteries. There are volumes of books, videos, tutorials available telling how to use, abuse, cheat or avoid it all together.

How Google ranks ads, sets its prices, decides upon the quality of your ad has always been seen as secretive and vague. Well this video from Hal Varian, Google’s chief economist, explains it all. Mind you, you may well have to view it a few times to understand it – I certainly had to – but it is all there in the open for all to see.

If you click the arrow in the bottom right corner you will get access to more adwords videos