Every second, consumers are searching on Google™ to find exactly what they are looking for – your product or service. What's more, nearly 60% of worldwide searches on the web are on Google.

Google AdWords™ puts your ads exactly where you want them: in front of potential customers, right when they’re looking for your products or services. AdWords ads appear alongside or above the results on Google.com search results pages and on sites in the Google Network. Your ads show up on Google almost instantly. With AdWords pay-per-click pricing, you pay only when someone clicks on your ad. In other words, you only pay for advertising that works.

AdWords gives you complete control over your advertising campaign – you create your own ads, choose keywords that relate to your business and target prospects in the country, state, city or neighborhood of interest to you. What’s more, you can change your ad or pause your campaign whenever you like.

And, thanks to the US $50 ad credit that VISA is pleased to offer commercial cardholders through a special arrangement with Google, it doesn’t cost you anything to get started.

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ABOUT GOOGLE ADWORDS:

AdWords is Google's flagship advertising product and main source of revenue ($16.4 billion in 2007). AdWords offers pay-per-click (PPC) advertising, and site-targeted advertising for both text and banner ads. The AdWords program includes local, national, and international distribution. Google's text advertisements are short, consisting of one title line and two content text lines. Image ads can be one of several different Interactive Advertising Bureau (IAB) standard sizes.

Google's AdWords division is based in Ann Arbor, Michigan, the company's third-largest facility behind its Mountain View, California, headquarters and New York City office.

Pay-Per-Click advertisements (PPC)

Advertisers specify the words that should trigger their ads and the maximum amount they are willing to pay per click. When a user searches Google's search engine on www.google.com or the relevant local/national google server (e.g. www.google.fr for France), ads (also known as creatives by Google) for relevant words are shown as "sponsored links" on the right side of the screen, and sometimes above the main search results.

The ordering of the paid listings depends on other advertisers' bids (PPC) and the "quality score" of all ads shown for a given search. The quality score is calculated by historical click-through rates and the relevance of an advertiser's ad text and keywords, as determined by Google. The quality score is also used by Google to set the minimum bids for an advertiser's keywords. The precise formula and meaning of relevance and its definition is in part secret to Google and whose parameters can be dynamically changed.

The auction mechanism that determines the order of the ads has been called a "generalized second price" auction. It is similar to the Vickrey auction, but is not equivalent to the Vickrey-Clarke-Groves (VCG) mechanism and hence truth telling is not an optimal strategy.

Site targeted advertisements

In 2003 Google introduced site-targeted advertising. Using the AdWords control panel, advertisers can enter keywords of interest, and Google offers to place ads on what they claim are relevant sites within their content network. Advertisers then bid on a cost per impression (CPM) basis for placement. Advertisers can also enter domains directly. Google will provide a list of related sites that you can select along with your entered site.

Site targeting campaigns are mainly designed for branding purposes, as the ROI will almost always be considerably lower than a traditional content-targeted campaign. Your ad will take up the entire ad block (as opposed to being 1 of 4 ads in a traditional AdSense ad unit), which will make it more prominent but cost quite a bit more.

The minimum CPM you can set on a Site-Targeted campaign is 25 cents.

(From wikipedia, the free encyclopedia)

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