Each time a search is conducted through Google or any of its search partners an auction takes place behind the scenes. In this auction your keyword bids and your quality scores are compared to produce an “Ad Rank.” This Ad Rank determines where your ad appears in the search results. You will actually only pay the amount required to combine with your Quality Score to produce a rank above your nearest competitor. In essence your bids and the quality of your campaign are compared against your competitors to determine your position.