Google Adwords - How it works

Google, in the present internet world, is one of the most successful and fastest growing companies. This is also in part due to the particular service which Google offers to its users - that of a search engine. Thus, people turn towards it as a reliable source of information. So, Google found itself in a unique position of bringing marketers and consumers closer to each other. The result of this was the creation of the Google Adwords advertising process. This service is Google's own improvement on the Pay-Per-Click (PPC) advertising model.

Google Adwords is the most sophisticated and popular pay-per-click advertising system on the internet. Unlike regular search engine listings, which are listed for free according to "relevance," as defined by the particular search engine involved, Adwords are small text ads which usually appear to the right of the unpaid listings. Advertisers bid on specific "keywords", which determines where the ad is displayed. However, unlike other search engines, where placement is completely determined by the amount of the bid, Google uses a complex calculation which also takes into the account the popularity of the ad as well. Thus, an ad which gets clicked on a lot can end up in a better position than one with a higher bid. That's how Google rewards the ad for relevancy, so it pays to create an ad that will invite clicks.

We all know how a Google search works. You type in your query and Google displays the top ten results on the page. Google Adwords takes the advantage of this fact of a captive audience - the researcher - and displays a list of unobtrusive advertisements on the right side of the web page. These ads link directly to your website, immediately guaranteeing a focused audience. Also, Google offers the same facility for many of its partner sites like AOL and Earthlink etc. Recently, Google has started another service - Adsense. This service enables you to display your advertisements on a website relating to the product or service you are selling.

There are a few guidelines on how to optimize Google Adwords to work profitably for you. While choosing keywords (on whose searches your advertisement will appear) be very careful, otherwise you will just be wasting your money on some very general keywords. Also, since Google allows you to bid for the keywords you want, decide beforehand how much you are able to pay for a link. One of the crucial advantages of Google Adwords is that this is a Pay-Per-Click model. This means that you only need to pay money to Google when a searcher actually clicks on the link to your website and ends up visiting it.

Also, Google offers you a number of customization tools to help you reach your favored section of the consumer population. For example, you can choose the countries to which you want your advertisement to reach. Google offers a list of more than 250 countries for you to choose from. Along with this, you can decide from over 14 languages in which your advertisement would be displayed. Google also has a novel Discounter program. This software automatically calculates the lowest you need to offer to stay ahead of the competition and immediately informs you of the same.

A plus point for Google Adwords over others is that Google Adwords maintains the position of your ad through not only Pay Per Click but also Click Through Rate. This is essentially important because this way even the small fish have the chance to stay alive. The company with the bigger bank balance does not win hands down; each company must strive to stay at the top. If your content is good, and your CTR is good then you can keep your place on the search results page easily.