What is Google AdWords? How Ads Auction Works

Google Ads formally known as AdWords is an advertising system that uses keywords to create clickable ads that appear in Google search results. It is typically a digital advertising system that advertisers use most. You may have to pay to be able to eligible to advertise on Google’s platform. Google business is not complete without ads because it where they get paid for featuring your advert on Google Adwords.what is google adwords

We’ve got you covered on how Google Ads Works, how the Auction packages works, the bidding process, and factors like Quality Score and cost-per-click will be detailed more. Learn more with us on Google Adwords and don’t forget to use the comment box.

This is where you can get the right answers to your questions on how AdWords work. First and famous, Do Google ads really work?

The answer varies because it all depends on the number of competition on the keywords you are bidding for and also the relevance of that keyword to real conversions for the company. Thus, AdWords may work for your business and vise versa. Yet, most businesses we found testified how effective Google AdWords made their business. You can really make this work for your business by using the right keywords, avoid writing weak or even low CTR ads.

Cost for Google Adwords

For you to know the cost of Google AdWords, you must study how AdWords bidding works, the average cost per click because there are lots of factors that can affect costs. Let’s look forward to knowing how these factors work.

How Google Ads or Adwords Bidding Works

Your ad rank is what determines the position of your ad which defines maximum bid time quality score. However, the highest ad rank gets the top ad position. What will determine your CPC is the ad rank of the next highest ad below you, divided by the Quality Score.

It is risky to bid on Google ads auction with low-quality scores because it heavily penalizes advertisers with such challenges. But those with high-quality scores get higher ad ranks and lower CPC.

The Auction runs for billions of times every month in order to provide the audience with the great results they are looking for. It is shocking to see that advertisers connect with potential customers at the lowest possible prices while Google rakes in billions of dollars as a result of revenue.

With your Google Adwords account, you can advertise for your business on Google, though the cost varies just as I mentioned it to you earlier.

How ad positions are determined – Google Auction

On your Google auction, the query is made on Google in order for the search engine to process the request and runs the auction in order to determine the position of the ad and the CPC at large.

How to Engage in Google

This is automatic. Whenever your Google ads are entered into an auction it will be as a result of the relevant keywords you are bidding on as it is important to user’s query search. Then your bids, Quality Score, and relevance will come into play in determining whether your ad qualifies to display on the SERP.

CPC – meaning

CPC is full known as Cost per click. This is the amount an advertiser pays each time someone clicks on their ads.

However, your CPC is determined by how competitive your keyword is, the maximum bids, and your quality scores. The average cost per click on AdWords also varies by keywords and industry. On the average ground, it could be $2.32 on the search network and $0.58 on the display network.

Thus, from the maximum bid, your quality score, and competitiveness of your keyword, Google determines what you pay (Advertisers).

Actual CPC

Actual CPC is the amount an advertiser pays each time a searcher clicks on their advertisement. Thus, it varies as it depends on the other advertisers in the auction. However, it is usually lower than the maximum bidding price.

What is CPM bidding?

CPM bidding is based on impressions and can be used alongside CPC bidding.


CPC is the cost of an advertisement as a result of how many clicks it receives while CPM is the cost of an advertisement based on how many impressions it picks up.


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