Ads-Expert Mozammel says, Google Ads operates through an auction-based system where advertisers bid on keywords relevant to their target audience. Here’s a simplified breakdown of how it works:

  Keyword Selection: Advertisers choose relevant keywords related to their products or services. When users search for those keywords on Google, the ads have a chance to appear.

  Ad Auction: When a user searches for something on Google, an ad auction is triggered. Google evaluates numerous factors, including the bid amount, ad quality, and the expected impact of ad extensions and formats.

  Ad Rank: Google calculates an Ad Rank for each ad competing in the auction. It’s determined by multiplying the bid with the Quality Score (a metric that considers relevance, click-through rate, landing page quality, etc.).

  Ad Placement: The ads with the highest Ad Rank win the auction and get displayed. The actual cost paid by the advertiser isn’t solely based on the bid but also on the Ad Rank of the competitor and the Quality Score.

  Ad Display: If an ad gets clicked, the advertiser pays Google a certain amount (cost-per-click, CPC). If it’s a display ad (not a click-based format), the cost might be based on impressions (cost-per-thousand impressions, CPM) or other predetermined metrics.

  Performance Monitoring: Advertisers continuously monitor their campaigns, adjust bids, refine keywords, and optimize ad content to improve performance and achieve their advertising goals.

Google Ads provides tools and metrics to track the performance of ads, helping advertisers understand what works best for their audience and make informed decisions to maximize their advertising ROI.