What is a bid in Google AdWords?

A bid in Google AdWords is the amount you’re willing to pay when someone clicks your ad. This is called a cost per click bid, or CPC bid, and you set your own maximum cost per click (max CPC) when you choose each keyword.

Google AdWords uses a bidding system to determine which ads get placed and for how much. When you run a Google AdWords advertising campaign, you essentially try to outbid other advertisers to have your ads shown when specified keywords are searched on Google.

When you create ads in Google AdWords, you’ll choose relevant keywords that you want to trigger those ads. Thus, when someone searches your chosen keywords in Google, your ads will appear if you are able to outbid your competition.

To make sure your ads get placed when your keywords are searched, you’ll choose a max CPC for each keyword you choose. This is how you tell Google what you’re willing to bid to get your ads shown when specified keywords are searched. You can choose the same bid (max CPC) for each of your keywords, or you can bid higher for more competitive keywords that are more valuable to you.

Keep in mind that your bid alone does not determine when your ads will run or how much you will be charged. Although you’ll never be charged more than your max CPC, how often your ads run and how much you are charged will also depend on your keyword quality score, which is determined when Google compares your keywords to your ads and your website landing page.

See: What makes people instantly click Google Ads now?