Google Adwords is a convenient platform for online advertising. Adwords provide a simple way of advertising where ads are created for all kinds of budget. Ads created thus are displayed along with the search result or in the content sites like Blogger or HowStuffWorks. The ads can be created in any format like text, image etc. making online advertising an interesting option. There are two types of Adword ads:

• Keyword-targeted ads: You choose keywords for which your ad appears and specify the maximum amount that you are willing to pay for each click. Google Adwords optimizes the cost per click to the minimum amount required for the display of the ad.

• Placement-targeted ads: You select Google content site where your ad will appear. You then specify the maximum amount you are willing to pay for each click or for each thousand view of that site. Like in keyword-targeted ads, Google Adwords optimizes the cost per click of the placement specific ads to minimum amount required for the display of the ad.

How does Google Adwords function?

The lifecycle of Google Adwords ads is –

1.      Creating the ads using relevant keyword related to the business or the selection of the content site where the ad has to appear.

2.      The ad appears for the targeted-keyword search in the “Sponsored Links” section on the page. If it is content-site targeted, it will appear for that particular site.

3.      Potential customer click on your ad for more information on your product/service which might culminate into a developing business relationship.

Why use Google Adwords?

Google Adwords ensure that the ads appear when a particular keyword related to your ad is searched for. The advantages of using Google Adwords are-

1.      Ads can be controlled – They can be formatted or edited and the budget can be re-set to suit changing conditions.

2.      Low advertising cost – The advertising cost is low as you pay only when clicked, which is the cost per click.

3.      Wider reach – Can target a wider range of audience on Google and its content sites thus increasing the ad viewership.

4.      Region specific – The ads can be designed in accordance with different geographic locations. This helps to make the ads region and language specific.

For all business types – Low investment makes it a lucrative platform for all business types; small-scale as well as multinationals

• CPC: Cost per click defines the charge you pay to the search engine for each click on your adverts. If your ad is displayed for a search query but the visitor doesn’t click it, you don’t incur any cost.
• CTR: Click-through rate is a measure of your account performance. Usually the higher the CTR the better is the account performance. CTR is calculates as number of ad clicks/number of impressions x 100