You know those text ads you sometimes see in your search results page. How did they get there and what's their value to you? Well, people do web searches for three basic reasons: entertainment, for instance, what's this morning's Hollywood gossip? Enlightenment, what did 19th-century critics really think about Hamlet? And most frequently, information, who can I call to deliver flowers to my mother right now in Mesa, Arizona?

 

 

When you do a web search, you see ads on your results page only when we believe they further one of those three aims. If we can't find ads that will truly complement your regular search results, we won't show you any ads period. But often ads really do offer meaningful information. Suppose, for instance, I do my search on flower shop Mesa, Arizona.

 

 

Here's my results page. Google search results are always ranked completely impartially by computer algorithm. Nobody can pay Google to improve their position on our results page. But advertisers can bid to have their ads placed up here and over here.

 

 

Take Sarah for example. Sarah owns a boutique flower shop in Mesa, Arizona. At any given moment, she wants her ads to reach the handful of people who are most interested in, well, flower shops in Mesa, Arizona. People, like me. The moment I do my search is what we call a moment of relevance. When Sarah's ad appears on my search results page, it might very well be exactly the information I'm looking for. And if I click on it, I'll go straight to her website, and she'll pay Google for that click, based on how much she bid to appear on that spot.

 

 

The more that users like me vote for Sarah's ad with our clicks, the more likely Google is to give it a prominent placement in future moments of relevance. At every step of the way, our system is designed to reward advertisers for creating ads that people actually find useful, like if I need to find a last-minute gift for my mom's birthday.

 

 

Thanks for watching this video. I hope it gave you a better understanding about how Google advertising works.