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Google Ads or Google AdWords is an advertising system offered by Google, where advertisers bid on specific keywords, so that their ads appear above Google search results. Advertisers pay, to get these clicks from google, and that's how Google makes money.
Based on the competitiveness of the keywords, on which you are bidding, and their relevance for conversions for your company, AdWords works for this. Google AdWords is effective for almost every business, until it wastes its money on wrong keywords or writes ads with little creativity.
An ad's actual rank is determined by its Ad Rank (Maximum Bid * Quality Score) identified. The ad with the higher rank is given the top position. The actual CPC of a Google ad is determined by dividing the ad rank of another highest ad among you by the Quality Score.
The only exception to this law is, that you are the sole bidder or the lowest bidder in the Google Ads auction. You have to pay the maximum bid for each click! AdWords bids strictly penalize advertisers, who submitted bids with poor scores. Conversely, ads with a high Quality Score get a higher Ad Rank and a low CPC.
Hence the three factors determine, that determine the cost of Google ads, Your maximum bid, the quality factor and the competitiveness of a keyword.
CPC, As the name indicates, defines the cost per click as an amount of money, that an advertiser has to pay for every click on their Google ads. The CPC of each campaign can be based on the keyword competitiveness, the quality factor and the maximum submitted bids can be determined.
The quality factor is a parameter, with the Google the meaning and functionality of your ad for the user based on the click rate of your ad, the relevance of the keyword and the quality of the landing page.
Google Ad Rank can be understood as the position of a company's ad on a search engine results page, which is based on the combination of the maximum bid and the quality score of the company.
Google Ads keywords are the words and phrases, on which advertisers place their bids, with the hope, that their ads are on top of the search engine results page (SERP) appear, when users search for those products or services.
