Some of the ads are charged by CPM (cost per 1000 impressions), meaning Google get paid just because people see the ads. That's similar to how ads in traditional media are billed - TV, billboards, newspapers, etc.
Not all ads use CPM though. Some use CPC (cost per click) and some use CPA (cost per action).
Doesn't matter, billions of other people do, and they prioritize ads, and results with AdSense on the pages above relevancy. They'll even show you shit results to keep you searching longer, which allows them to show you more ads.
Do they though? I don't know a single person that has ever clicked on an ad. I know, sample size of one, but it just seems so basic to know not to click on them. Maybe those people really do exist. Sigh
Do you think Google has become one of the most powerful & profitable companies on the planet through a revenue model that doesn't work? Of course people click them. If people didn't click them then Google would have gone bankrupt decades ago. One thing I learned years ago is that I use the Internet very differently than an average person, and I constantly overestimate the intelligence and knowledge of the average person. Corporations bank on stupidity, because it's abundant.
I have no idea how they make money, it never made sense to me. It still blows my mind to think there are that many people that click on ads, I just have a really hard time believing it still.