The mechanics.
WHAT HAPPENS
You choose searches you want to appear for You set what you will pay per click Ads compete, and position depends on bid and quality You pay when someone clicks
WHAT YOU PAY FOR
Clicks, not appearances.
WHAT DETERMINES POSITION
Your bid How relevant your ad is to the search How good the landing page is
THAT LAST PART MATTERS
A relevant ad and a good landing page cost less per click than a poor one at the same position.
WHAT THIS MEANS
Improving relevance reduces cost.
It is not simply an auction of money.
WHAT YOU CONTROL
Which searches trigger your ads What the ad says Where it sends people How much you will pay When and where ads show
WHAT TO START WITH
A small number of searches you are confident about.
Not a broad net.