Google AdWords is a marketplace where businesses can pay to have their websites appear in the top organic search results for specific keywords.
The main idea is that you choose keywords to promote your brand. A keyword is a term or phrase that a user types into a search engine and subsequently sees your ad for. Only the terms you choose will appear in your adverts.
Google tracks how many people click on your adverts and charges you for each one. They also track impressions, which is basically a number that indicates how many times your ad was displayed when consumers searched for that phrase.
The click-through-rate, or CTR, is calculated by dividing clicks by impressions. This is the percentage of users who arrive at your advertised page because of clicking on your advertisement.
Google doesn't just want to offer folks the most expensive advertisements; they could still be awful. They care so much about their users that they'd rather display them a more relevant and better ad from a less expensive advertiser.
As a result, Quality ads + competitive bid = victory!