With AdWords there are a few things to consider before getting started. First and most importantly, what is your budget? Corporate Conversions can help you determine what a competitive budget would be by doing extensive keyword research.
Once a budget is set and ads are created, the account can run. In the above screenshot the search for “kids scooters” displays the PLAs and normal ads in the results. Those are called impressions. Not one of those companies paid for those ads to show for that keyword. The companies will pay only if their ads are clicked on, hence Pay Per Click. Once the ad is clicked that will send the searchers to the website of the company paying for the ad.
In terms of budgeting, if your company allocates a daily budget of $5 ($152.50/mo) to spend on AdWords, but on average only $3 a day of ads are clicked on, you will pay $91.50 that month. Conversely, if you meet your $5 a day budget before the time limit set, Google will not show your ads after your budget is spent, so you can be assured you will not overspend what you have budgeted.