Bidding Basics: Cost Per Click

The Google Ads Auction

Every time someone searches, Google runs an instant auction. Advertisers compete for ad positions. But it's not like eBay where highest bid wins. Google's auction considers both your bid AND your Quality Score. You set a maximum bid—the most you'll pay per click. But you often pay less. Understanding how this works prevents you from either overpaying or losing out on valuable traffic.