Google AdWords is its advertising system where advertisers bid on certain keywords in order to get their advertisement appear on top of Google search result. One of the popular foam of Google AdWords is its pay-per-click advertising.
In order to get Google AdWords, businesses first needs to register and establish a Google AdWords account. Google uses an auction system to determine the cost of pay-per-click (PPC). This is the amount that an advertiser pays for Google AdWords. Your cost for PPC and your ad position is based on a quality score as well as bids of other competing bidders. They come up with an ad rank to determine your ad position and the highest bidder gets the 1st ad position. Your cost price is determined by the next highest bid below you and the quality score. Only time this method changes is when you are the only bidder and in this case you pay the amount you bid. Google run the auction millions of times during any given month.
Some criticize the process and say social media is a much better way to advertise given recent trends in technology use as well as changes in the advertising medium.