Google’s advertising network is referred to as Google AdWords. The way the Google Adwords network operates is by allowing advertisers to bid on an endless selection of keywords that they believe may be typed into the Google search engine in search of information. When an advertiser bids on a specific keyword, and they bid a high enough price, the result is that their ad will appear in a special segment of the search engine results pages for that keyword which is located both above the regular search engine results (shaded in yellow) and along the right side of the page as well.
If an advertiser does have an ad appear in one of these places, and a search user happens to click on the advertisement, traveling to the advertiser’s optimized landing page, then the advertiser will be charged based on the bid amount. This means that the advertiser is only paying for advertising when the ad is actually being clicked rather than simply for having it displayed. The advertiser does not have to pay for the ad to appear, they only have to pay for the traffic that they actually receive as a result.
What is paid for each click is going to be determined by what other advertisers are bidding for the same keyword. It will also depend on the relevancy of the ad within the Google Network based on what the keyword is. This Google AdWords system has become an excellent way for internet marketers, business owners and other advertisers to acquire leads. However, it is important to know that in order for Google AdWords to work successfully for an internet marketer, they have to have a firm grasp on how the system works, because keywords with high conversion rates on Google AdWords are often quite competitive, and misusing the system can result in poor results; the dreaded unforeseen consequences.
Gaining a thorough understanding of what Google AdWords is and how it works is the first step to employing the ad network to your benefit. Make sure that your ads (your text) is directly relevant to the keyword (s) associated with them. The more relevant that the ad is to the search, the more likely you will be to receive traffic based on your advertisements. Google also rewards advertisers with highly relevant ads with smaller advertising costs, making it very worthwhile to strive for quality and relevancy in your advertising. In this way, your performance, in addition to your bid, directly impact on the display of your ad. Google is in business to make money and they only make money when you click; so, Google wants the best performing ads to appear more often.
When search engine users are able to find advertisements for businesses, products and services that actually correspond with what they are searching for, they are much more likely to click on website advertising. Google rewards this relevancy because they want their search engine users to find what they are looking for without difficulty, misleading ads or spam.