AdWords is an ad-selling system run by Google. It is Google’s main source of revenue. AdWords provides pay-per-click advertising and set-targeted advertising for both text and banner ads. It is a system where people pay money to place their advertisements on Google and/or any individual website. Its program includes local, national, and international distribution. The text advertisements in Google’s are short. It consists of one title line and two content text lines. Image ads can be applied using one of several different Interactive Advertising Bureau (IAB) standard sizes.
It is a product that was launched in 2000. Back then, advertisers have to pay a monthly amount and Google would set up and manage their campaign. But later on, small businesses that wanted to manage their own campaigns introduced AdWords self-service portal. Today, in Google AdWords, advertisers who wish to advertise need to create an account. Then, they will insert the desired advertisement and choose among the several options for the maximum amount that an advertiser is willing to pay-per-click on the inserted ad. Advertisers would be asked to use a credit card and upon approval of the credit, the advertisement goes out live on the web. Every time an Internet surfer clicks on the ads, Google records it. As the amount reached a certain level, Google will then charge advertiser’s credit card.
So Google AdWords is a program where you pay only when an Internet surfer clicks on your advertisement. AdWords lets you control your advertising budget as it gives you the ability to set the maximum price that you are willing to pay, per click and the maximum allowable daily advertising budget.