Facts about how Google Ads Work
The Google Ads marketplace works as an auction. You set a budget and a bid. The bid sets how much you are willing to pay for each click. If your maximum bid is $3, Google will only show your ad to people if other practices aren’t bidding more (on average).
Google will show the ad by the practice who bids the highest amount for that keyword, assuming that all bidders have the same quality score (more on this soon).
If a medical practice is bidding less for the keyword that you want your ad to show up for, Google won’t spend your maximum bid. It optimizes impressions and bids. You may end up paying less than $3 per click.
People bid money for clicks, but,
The highest bid does not always win!
Google combines the bid amount with a quality factor (which we’ll explore shortly), in order to serve the most relevant ad to the user in relation to their search query. So Google looks at the content of your ad and the amount you are prepared to bid. In short Google combines:
Ad quality (relevant keywords) & Landing page quality + Bid amount = Leads sent to your website.