What is Google AdWords?

What is Google AdWords?

Google AdWords is Google's advertising program in which advertisers bid on certain keywords in order for their ads to appear in Google's search results or on Google Ads enabled websites and blogs. Advertisers have to pay every time someone clicks on these ads. Google keeps a portion of the revenue generated from this system while the rest is credited to the account of the publishers. Google AdWords and Google AdSense has now become Google's main source of income.

In simple words, Google AdWords is program by which Google allows advertisers to bid on keywords. The advertiser who wins the bid, gets to show his ads on the search results or on Google Ads enabled sites. Whenever someone searches for that particular keyword, ads of that advertiser appear in the search results. In case of AdSense, Google looks for articles which feature that particular keyword. If Google finds a match, then ads of that particular advertiser shows up next to the article.

Now, if a person clicks on the ad units, advertiser pays Google the bid amount. Google keeps a portion of the revenue generated, while credits the rest to the publisher's account. This system has evolved into Google's main source of income, earning Google USD $43.7 billion in 2012 alone.

For more info about AdSense read : What is Google AdSense?

                                                        How does Google AdSense works?
                                                        Understanding Google AdSense.

Overview:

Google uses its mighty Internet search engine technology to serve advertisements on its publisher's sites and its search results. Ads are targeted to audiences based on the site's content, search keyword, viewer's browsing history and the viewer's geographical location. The ad units which Google places on its publisher's sites and its search results, are provided through advertisers. These advertisers who advertise with Google AdSense are enroll through a dedicated Google AdWords Program. Google's AdWords Program is similar to Google's AdSense Program, the only difference is that through AdSense you earn money, while in AdWords you have to pay money. In simple words using AdSense you put money from Advertiser's pocket into your pocket on the other hand through AdWords Advertisers put money from their pocket into your pocket.

All these years Google's AdWords and AdSense together has grown into a giant firm, which is now the best advertising program on planet Earth. This attracts a lot of advertisers and publishers from every corner of this world, all because of its superior technology, easy and transparent bidding mechanism for advertisers and expertise in creating and placing various format of user friendly ads units on its publisher's site and search results. These ad units are no ordinary ad units, these are smart ad units which judges the viewers interest based on its location and browsing history along with the content on which the ad unit is placed, to serve as relevant ads as possible. This boosts interaction of the viewers with the ad units and thus earnings.

History:

AdWords was first launched back in 2000, by Google. Earlier in AdWords advertisers used to pay a monthly amount based on which Google would set up and manage advertisers ads campaign. But in order to make the system more transparent, AdWords allowed advertisers to manage their own ad campaigns, by soon introducing the AdWords self-service portal.

Advertisers found the system of managing their own ads a little complicated. So, to make matters simple, in 2005 Google launched a campaign management service called Jumpstart. The goal of Google's Jumpstart program is to offer free telephone support from a Google specialist to help advertisers manage their online advertising campaign.

But even after the launch of Jumpstart, many advertisers still found AdWords ads campaign complicated and hard to manage, some advertisers had no other option other than hiring specialists to manage their Google AdWords ads campaign. To solve this problem, Google decided to introduce special programs to educate advertisers about AdWords ads campaign. So, in 2005, Google launched the Google Advertising Professional Program to certify advertisers who completed AdWords training and passed a course completion exam.