What is Google AdWords

Whoever created Google AdWords is a genius, for it is a very cost effective way of advertising. What Google AdWords does
is to use some algorithm to decide what RELEVANT text advertisements either in their Google SERP (Search Engine Result Page) or in the websites of a Google AdSense publisher based on various factors such as relevancy, keywords, how much the advertisers bid to get their advertisement displayed, geographical location, language, etc.

I myself is a Google AdSense publisher, and in this blog you will see various Google AdSense products, including advertisements. Now when I go to my own websites, I often see advertisements that interests me, but I have to be very careful not to click on the advertisements in my own websites, for that will be considered invalid (used to be called fraudulent) clicks, and if discovered by Google AdSense, I will be kicked out or their program, and the chances of me getting my account reinstated are very slim.

If you are interested in participating in the Google AdSense program as a publisher, you must first have a website. A blog will do and it is very easy to create one. You can get a quick start by referring to Dummies Guide to Google Blogger, "online book" in progress. Use the CONTENT at the top of the main column to find topics, the search box or the Labels (categories) in the right sidebar. Once you have a website such as a blog with reasonable content, your can apply for an account via the "Generate revenue from your website. Google AdSense" referral link at the top of the right sidebar.

Types of Google AdWords advertisements

Generally, Google AdWords advertisements can be classificed into two categories - CPC (Cost per Clicks) and CPM (Cost per 1000 impressions).

CPC or Cost per Click advertisements

For CPC ads, you pay nothing until someone clicks on your advertisements. It is also sometimes referred to as PPC or Pay per Click. Thus you are paying for traffic, not just for displaying your advertisements. This can be a very cost effective method of advertising your website and bringing in more visitors as the amount you pay may be per click may be very low, depending on the popularity of the keywords chosen.

CPM or Cost per thousand impressions advertisements

For CPM or Cost per thousand impressions advertisements, you pay the moment your advertisements are displayed, irrespective of whether anyone click on the advertisements or not. It is also sometimes abbreviated to CPI or Cost per Impression, but Google uses Cost per thousand impressions because if the figure is given in terms of each impression, it may be a very small figure, much below 2 decimal points. Even if someone do click on them, you still pay the same low amount per impression. CPM advertisements are often used by corporations for branding, that is, to make their brand well known. So they are not so much interested in getting visitors to their website, but in having their advertisement seen by as large an audience as possible at the lowest cost.

Cost Effectiveness of Google AdWords advertisements

The major advantage of Google AdWords advertisements is that they are targeted at the audience you want to attract either by using keyword or by geo-targetting by country, region, even cities. You can also target by language. In this way, you don't waste money by getting your advertisements displayed to audience who have no interest in what you have to offer.