The actual process that Google uses to determine how much an advertiser will receive for any individual click is not revealed by them, but based on what we see in terms of historic results you can get a pretty good idea from your site.
Remember that the value of the click is determined by a dynamic ad engine for each page, and for each individual visitor and visitor category. For example, a repeat visitor to your page is worth less money as a click to Google than a new visitor, generally speaking.
There are a few things that are factored in by Google when they are figuring what any particular ad click is worth on your site, not the least of which are: (continue reading…)