Understanding Review and Charging Mechanism
Google AdWords
Description:
Google
AdWords offers you the possibility of placing you ads on different websites.
The auction and ad qualification for display network is a little different than
the search engine. When you sibmit your ad Google first reviews it. In the
review, it is checked if your ad has complied with all the rules that Google
sets it for advertising: there are some disallowed content (like you can’t
advertise guns) and there are some disallowed practices (like you cannot use
misleading landing pages). Google does an auction for pricing whereby you pay
the price of the next best bid by your competitors. However you only pay for
incremental clicks. Incremental clicks are clicks that you are expected to get,
more than your competitors for an ad position.
Further reading:
https://blog.tryadhawk.com/google-adwords/how-google-adwords-works/