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To place an advert, an advertiser specifies a list of keywords (or sometimes landing pages or products) for which they want the advert to appear, the advert's content and the price they are willing to pay for a click. When a user searches, Google displays a list of adverts next to the natural search results triggered by keywords in the search query. The adverts' order is decided by the cost per click the advertiser is willing to pay and the advert's historical performance.

For example, imagine an online retailer wanting to advertise its digital camera range. They create an advert triggered by the key phrase 'Canon digital camera'. A user then uses Google to search for the phrase 'buy Canon digital camera'. If the search phrase contains the specified keywords, the advert may be served. If a user clicks on the advert, the retailer is charged. If not, there will be no cost.

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