What is…Google Adwords and How Does it Work?

WHAT EXACTLY IS GOOGLE ADWORDS?

Google AdWords is the chief advertising mechanism for Google which generated profits of 21 billion dollars in 2007. Adwords is also inextricably linked to Google Adsence, its webpage ad serving process. Think of Adwords as where you write the ad and Adsence as the actual ad on the websites.

In order for advertisers to display an ad on a Google served page, advertisers pay to create or have created an ad in Adwords. When the ad is clicked on any given page, money is subtracted from the advertiser’s account and given to the owner of the site who hosts the ad. Advertising uses Adwords, pay-out for advertising space is Adsense.

This is the crux of the Google “Pay-Per-Click (PPC)” advertising system. PPC simply means that advertisers pay for every “click” of their ad that is hosted on Google served pages (I say Google served Pages because, Yahoo, for instance, has their own PPC system called “Yahoo! Search Marketing”)

You can bring targeted traffic to your website by using Adwords. Adwords ads are linked to keywords that are related to your site or business. They are “placed” on web pages with related content all over the Net . When these ads are clicked because it grabs the attention of the reader, they are then sent to your site (or whatever link you embedded into the Adwords link). The goal is to spend as little in advertising as possible and convert the “clicker” into a sale at the other end of the advertisement.

Google Adwords as an advertising medium is very effective because it is a pay as you go system rather than a money up-front system. Adwords can create highly effective, highly targeted campaigns that will bring hungry customers to your website. You control your advertising budget on a daily basis if you choose, only spending that which you wish to without any predetermined requirements by Google.

Adwords is a massively profitable tool, both for you and for Google. Properly used it can send an incredible number of people to your site where you can further monetize the traffic. Having said that, a word of caution is in order. PLEASE, PLEASE take the time to learn about Google Adwords before you attempt to use the system. While its not so complicated, it has a way of seducing you into thinking that if you just use a little more money, and then a little more, and a little more, the flood of traffic will finally come.  If you ever reach this point, STOP and shut down because you are already past the point where you will get useable traffic. You don’t have to spend more and more to make Google Adwords work.

BUT YOU DO HAVE TO UNDERSTAND GOOGLE ADWORDS, FIRST!

I have included a few reference links, some of them are free and others are paid services. I highly recommend that you read everything available that is free and THEN get some structured education on Adwords.

1. Wise Geek FREE
2. John Jerkovic FREE
3. Adwords, How Does it Work FREE
4. Money and Adwords-Click Here! PAID
5. Adwords and G Money Pro-Click Here! PAID
6. Google Profits-Click Here! PAID