What is Google Adwords?

Google Adwords is the advertising product Google uses on its search pages.  Google Adwords ads are located at the top of a search page and along the right hand side.  Companies seeking to advertise on Google create a 3 line text ad along with a link to a web site.  Advertisers who want to generate traffic to their web sites and potentially create customers use keywords to increase the amount of hits a query will generate.  By using the right keywords an advertisement can appear at the top or close to the top of the page.  Keywords that Google does not like can create a punitive environment for the company and can actually cost the company money without generating any revenue for the company.

When a company decides to advertise on Google they create a Google Adwords Campaign.  The needs of the company determine what kind of Adwords Campaign a company will use. The cost of Google Adwords varies.  Google bases its pricing on the number of clicks and the number of impressions an ad receives. 

There are terms you should know before you begin an Adwords Campaign.  Cost Per Click or CPC is what Google charges each advertiser for each time a user clicks on their ad.  Another way a company’s ad appears on Google is through an Impression.  An Impression is when an ad appears on a Google web site and the company is charged every 1000 times this happens even if no one clicks on the link.  Pricing is also determined by your click through rate or CTR.  Click Through Rate is determined by the number of clicks over the number of Impressions.  Google uses the click through rate to determine a quality score and the quality score determines the Cost Per Click.  Google rewards advertisers that understand the pricing system and those advertisers who can utilize optimal keywords.  Google offers Google Adwords training on its web site to assist companies seeking to use Google Adwords.