I’ve experimented with Google AdWords over the 8+ years I’ve been working online and it has definitely seemed like a little bit of a mystery to me. I remember receiving a bill a time or two and thinking “Wow, did this help my ranking or web traffic at all?”

If you’re new to the world of AdWords (or even if you’ve been around for awhile), you might be wondering how it all works and how you can get the best bang for your buck.

WordStream has put together an infographic titled “What Is Google AdWords? How the AdWords Auction Works”. It’s a good resource for companies who would like to know how to cut costs and get better rankings.

It walks you through how Google decides what ads to show and how much you pay, as well as some alternative bidding methods. (Click on the picture to see it in its entirety.)

Have you used Google AdWords successfully before? If yes, what’s your secret?