Introduction to Google Adwords

Google Adwords is a Pay Per Click (PPC) advertising program managed by Google, Inc. When ever you perform a search on Google, you'll see the result-page displayed in three sections. Two sections are for PPC ads locating on the top and on the right of the page. The middle section is displayed for free.

For example, if you run a search on Google using the keyword "Google Adwords" you'll get results similar to the table below:

Google AdWords
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Google Adwords
PPC program where webmasters can create their own ads and choose keywords.
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The Three Sections Of The Table

I have divided the table above into three sections, two sections are in blue, and one in red. The red section shows the results of the web pages with the highest ranking for the keyword "Google Adwords." They are displayed for free of charge. They are ranked and selected from Google's search algorithm.

The Google uses a complex algorithm called PageRank. PageRank algorithm uses many factors to calculate such as the quality of the web sites, internal and external linking, contents quality, and many other factors including secret criteria not exposed to public. Your website has to be one of the best (in millions of web pages) resulting from countless of webmaster hours in order to land on the first result page.

Google AdWords Pay Per Click (PPC) Advertisement

The sections in blue are the Google AdWords Pay Per Click (PPC) advertisements. You don't need to have a top ranking web page with countless of webmaster hours in order to land on the first results page. In fact, you don't even need a web page to be listed on the first searhed page. All you need is your PPC ad. You create your own ad with the keywords relating to your promotional materials. If your PPC ad has met Google's advertisement criteria, which you could learn, your ad could land on the first page or even on top of the first page.

Google AdWords PPC Is Different

In general, Google Adwords has similar concept as other PPC programs. The highest bidder gets to display his/her advertisement at the top of the page, and the second highest bidder gets the second ad listing position and so on. What makes Google Adwords PPC unique are the additional requirements for winning the ad position. In addition to the highest bid, Google also includes the following criteria:

  • Your advertisement popularity
  • How much you set your daily budget
  • How much you set your max bid cost per click
  • Your advertisement performance history such as click through rate and position
  • And other factors...

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