What Is Google AdWords?

Google AdWords is a method for advertising your site and/or products that is figured on a cost per click (CPC) or on a thousand page views (CPM). The key feature of this is that you do not pay for the ad unless and until it attracts someone to click on it. The program was introduced in 2000, with site-targeted ads added in 2003. The text ads are brief, consisting only of a title line followed by two content lines, while image ads come in several standard sizes. Video advertising is also possible. Image and video ads are only available on the content network.

Types of AdWords Ads

AdWords comes in two flavors: keyword-targeted ads and placement-targeted ads. Ads appear on Google and the Google Network sites, depending on the type of ads. The Google Network consists of a group of search sites, as well as content sites. The search sites include AOL, Ask.com, AT&T Worldnet, EarthLink, Netscape Netcenter, and Shopping.com. The content sites include About,  Food Network, HGTV, HowStuffWorks.com, Lycos, and NYTimes.com. The Google Network claims to be the largest online advertising network and to reach more than 86% of all Internet users.

Keyword-targeted ads work through your choice of keywords for which your ads will appear. In addition to specifying the keywords, you also tell how much you’re willing to pay for each click, the cost per click or CPC (when an advertiser clicks on the AdWords link to your site). A discounter service minimizes your cost by accepting the lowest price per click (PPC) that keeps your ad in its position. A system called content bids allows you to set different prices for search sites and a separate price for content sites.

Keyword-targeted ads appear in two places: on Google search results pages—both under the “Sponsored Links” header in the right-hand column and above the listing of search results; and on Google Network sites.

For placement-targeted ads, on the other hand, you are the one who chooses the content sites on Google Network on which your ads will appear (they don’t appear on search sites). In this case, you identify the CPC or CPM on each site you choose, and when someone clicks on your ad, you pay. There is a discounter service for this type of ad as well.

What Are the Two Different Editions?

Google AdWords offers two different editions for customers to choose from: Starter Edition and Standard Edition, after paying a $5.00 activation fee for an AdWords account. Then you can pay as little as US $0.01 for each ad. The most important distinctions are:

• Starter Edition only allows for one product or business to be advertised with one set of keywords, while Standard Edition allows for multiple products or businesses, as well as multiple keywords.
• Starter edition is limited to a text ad format, while Standard Edition allows for multiple formats  including not only text but also video, image, audio, and print.
• The report generated for you by AdWords is more in-depth for Standard Edition than for Starter edition.
• You are allowed to target customers in a variety of locations with the Standard Edition, while with Starter Edition, you are limited to one location or region.
• Standard Edition has extra features including more price bidding options, an advanced set of tools, and enhanced placement features.

Because the Google AdWords program has undergone so much development, Google makes available online not only its lengthy list of advertising policies in the AdWords Help Center, but also extensive lessons, both text and multimedia, on aspects of  AdWords. Featuring over 100 lessons, with quizzes to self-test your understanding, these lessons help you become better acquainted with the far-ranging features of the program.

It is advisable to spend some time learning more about the program, as well as carefully preparing your advertising campaign, planning your budget, and preparing your business for the potential increase in traffic that an ad campaign is designed to stimulate. Also, plan for the time you will need to keep track of your AdWords campaign and make adjustments to it—both in terms of ad placement and content as well as your CPC and/or CPM amounts.