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About Google Adwords

Google's text-based system for advertising on its site and its partner sites is called Adwords. The service allows you to create your own ads, choose keywords to help match your ads to your audience, and control the cost of your advertising you pay only when people click on your ad (a cost per click). Anyone wishing to promote a product on Google can enroll in this program.

The AdWords concept is simple: you create ads that Google shows alongside regular search results. Your ads appear when somebody searches for keywords you’ve told Google you want to be associated with. For example, if you have a site that sells Kids toys, you might want your ad to appear alongside Google results when people search for kids play or kids toys.

As with any advertising, you can create ads for your whole site (kiddie play supplies), for particular products you sell (puppy, play train), or even for ideas (a comparison of political candidates’ education policies). But unlike traditional advertising, you don’t pay Google when it displays your ad (which is called an impression); instead you pay only when somebody clicks your ad.

AdWords may also be a good choice when you have just a few dollars for reaching your audience. You can advertise on Google for as little as $1.50 a month. Google charges just $5 to sign up for AdWords, and after that, you can set a budget as low as five cents per day. It costs more to send five snail-mail letters a month.

The confusing part about AdWords is that Google doesn’t charge a set price for ads. Instead, the company lets you bid on the keywords that you want to trigger your ads. If you bid higher than everyone else who’s bid on the same keyword, your ad is likely to appear near the top of the sponsored links.

For example, if you set a maximum bid of 35 cents for the word stapler, and the next highest bid is 23 cents, Google gives your ad priority among the sponsored links it serves up when somebody searches for stapler. Even better, Google charges you only a penny more than the second-highest bidder, so you may never even have to pay the full 35 cents you bid. If you bid less than the highest bid, Google still lets you play, it just doesn’t show your ad as often as other people’s.

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