Google's Adword Auction

Pay Per Click (PPC) advertising is something that people feel quite wary about, nobody wants to over pay for their ad but at the same time underpaying will not produce results either. Very quickly a low cost PPC campaign will discarded because you will feel that you have had no return on your investment.

Google have produced a video which simply explains their PPC system and I'd recommend you spend next 10 minutes or so watching this video, it could save you a lot of time and confusion in the future