How does Google AdWords work?
AdWords directly operated under a bidding system. The bidding system means the price of a particular advertisement. More the price, the higher will be the ranking of that Ad. The position and status of any ad are purely determined with the help of its ad rank, which is also known as the maximum Bid Times Quality Score). The ad which scores the highest ad rank gets the first position which means it will be displayed on top in ads whenever the provided keyword will be searched in Google. There is an exception in this process too.
When any marketer is the only bidder or the lowest bid in the Google Ads auction, then they have to pay their maximum ‘bid per click’. This can be understood by the fact that AdWords works on the ‘pay per click’ process. In other words, ‘pay per click’ can be defined as the terminology in which the marketer only pays the amount he/she has quoted, only if a visitor clicks their ad.