How does google ads work?

Google Ads uses a pay-per-click (PPC) mechanism. In other words, marketers target a certain term on Google and place bids on the keyword in order to compete with other marketers who are also targeting the exact same keyword. The bids you place are known as “maximum bids,” which refer to the highest amount you are ready to pay for an advertisement. For instance, if your maximum bid is $4 and Google deems that your cost per click is $2, you will receive that ad spot! You will not be eligible for the ad spot if the price is higher than $4.