Google adwords is the world leader in pay-per-click advertising. Google adwords also holds largest numbers of advertisers than any other PPC ad network.

The ads are displayed on the Google search result page and also on popular website AOL search, About.com and many other thousand of small and big websites that have joined the adsense program. Adwords have a unique and interesting ad ranking system.

For an add to appear it uses the combination of the bid and the click-through ratio. Whereas on other ad network ads appear with respect to the amount their owners are ready to pay for one click.

This unique system makes Google to maximize its revenue stream as it gives small advertisers an opportunity to effectively compete with big companies. For a small advertiser, it is always difficult to compete on the cost-per-click basis.

Adwords ad contains a headline, a small description and a visible URL field. It gives advertisers various options of a keyword targeting: broad matching, exact matching, phrase matching, and negative keywords.

The matching options determine how close the search string entered by a user should be to a keyword selected by an advertiser. If the advertiser chooses [free software] as their keyword (square brackets mean phrase match), their ad will only appear if a user enters free software into Google search.

If the advertiser has chosen “free software” (quotes mean exact match), the ad may appear for free software download or download free software or free software finally, if the advertiser has chosen free software with no brackets or quotes around it (for a broad match), the ad will appear, even if a user search for internet security software.

With negative keywords, advertisers can prevent their ads appearing when a user enters keywords, which could affect his ppc campaign. For example, a retailer would usually add -free, -replica to the keyword’s lists to avoid targeting “free stuff” users.

Quick Tip: Google adwords also provide API, which allows third-party developers to create applications that will work directly with adwords accounts.

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