How Google AdWords Works

 At some point you learned that "organic" links are those that come up as a result of the natural process of the engine's software matching the search terms with the content of the site, and "sponsored" links were actually ads for the sites. These sponsored links are Google's main source of revenue. So how can you get a "sponsored" link for your site and what would it cost?

How Google AdWords Works

Google AdWords is the most widely used type of Pay Per Click (PPC) advertising available in today's Internet Marketing environment. With Pay Per Click the business that created the ad only pays when a user clicks on the ad. It costs nothing to place the ad. You create the ad using keywords appropriate for your site. Other sites will be interested in the same keywords so Google uses an online auction process where you "bid" for the right to use the keyword. The higher the bid, the better the odds are your ad will appear on the Search Engine Results Page (Serp). Google also adds a little wrinkle called the "Quality Score" that can bump up your ad a bit on the SERP. So how do you know how much to bid? Google has tools within Google AdWords Account pages that help but you have to sign up for an AdWords account to use them.

The account is free so go ahead and sign up. It's a very effective way to learn about the process and see if it might help you. First you can use Google's Keyword Tool to select an appropriate Keyword. Then enter your selected keyword -- remember a keyword should be as specific as possible and will almost always be a phrase, not a single word -- into the Traffic Estimator tool buy google Adwords account. Now you can play around and enter different bid amounts. Try entering a low bid and the tool will tell you what average position in the SERP you can expect. Testing higher bids can show you the amount that will give you the biggest bang for the buck.

Is Google AdWords Right for Me?

To answer that question you have to keep in mind that PPC advertising does not generate any revenue to your business. You are paying to get users onto your site but what they do when they get there depends on the quality of your site. If a user clicks on your PPC ad, spends a few minutes on your site and then leaves, you have earned nothing and you have added to your operational costs. If your site is e-commerce you need the user to buy something. Increased traffic does not automatically result in increased revenue. So if you have a high quality site with good content and graphics, a site that is easy to navigate and is user friendly, and if you offer products of real value, PPC can help. You have probably heard the old adage "You can't make a silk purse out of a sow's ear." The point applies to any form of Internet Marketing. If you have an unattractive, unhelpful, confusing site with overpriced products, PPC will probably not help you much. Before engaging in a Google AdWords campaign, invest some time and effort into upgrading the quality of your site. Remember, Content is still King in Internet Marketing. Good luck with your ads!