Google AdWords works based on a keyword or specific query. If someone searches for something on Google, it looks for ads that match the keyword – and if one or more advertisers are bidding on the same one, an auction begins. This is called Google AdWords Bidding.
This is essential to gaining visibility on Google but can take up a large part of your advertising budget. You don’t want to risk bidding too low and missing out on advertising opportunities or risk bidding too high and end up overpaying for your ads.