Google Ads functions as an auction, but unlike a regular auction, it’s not just your bid that matters – the auction takes the quality and relevance of your ad campaigns into account. This means that the playing field is level for everybody, not only those advertisers with the deepest pockets.

The Google Ads auction is centered around the concept of keywords. Advertisers identify keywords that are relevant to their business – and that searchers are likely to use when trying to find something – and bid on them, stating how much they are willing to pay each time a Google user clicks on their ad. This is where the term “pay-per-click advertising” comes from.