Ad formats available on search engines vary from text ads to shopping ads, static and responsive banner ads, retargeting, video, and more. Here’s a high level explanation of how it works:
Bid On Keywords
Bid on keywords relevant to your product and/or service (or upload optimized product feed to Merchant Center for Google Shopping campaigns) and create ads that link to the most relevant page on your site.
Reach Potential Customers
When potential customers search related keywords the search engine displays your ads at the top or bottom of the search results in an area marked “sponsored” or “ad.”
Pay For Clicks
You pay the search engine when someone clicks on your ad, hence the term “pay per click.” In this way, you are paying for visits from prequalified, highly targeted potential customers.
Highly targeted visitors to your website can turn into customers, which in turn leads to highly potent return on investment (ROI).