Google and Bing use an auction system where people bid for the top spot in the paid directory component of most searches. You can see above any top listings with a small “Ad” icon are paid listings in your search consequences. Once an ad is created, you in deciding which searches you want to appear on by creating a list of keywords. For instance if you need your online page to seem when a person types “Get a mortgage” into Google you are going to add “Get a mortgage” onto your keyword list.
You would then set the maximum your inclined to pay each time a person clicks your ad, here is called you bid. When a man does a search using key phrases from your list Google will place the ad with the highest bid in the 1st spot, the second highest bid in the second one spot and so forth. The more competitors you have got an a particular keyword, the more bids there are, the more costly a click for that keyword turns into. So to get the most bang to your buck you want to find keywords that your viewers is searching for but your competition hasn’t thought of. You pays only when a person clicks in your ad, not every time it appears in a search. This ppc or PPC model is how Google and Bing earn money from their search engines.