Google AdWords is the online advertising product created by Google that is the company’s main source of revenue. AdWords offer a variety of pay-per-click advertising methods, such as cost-per-click (CPC) advertising, cost-per-thousand-impressions or cost-per-mille (CPM) advertising, and site-targeted advertising for text, banner, and rich-media ads. AdWords is for website owners, who can make money by hosting ads on their sites, and for vendors who pay to have their ads shown on the AdWords network of sites.
For website owners, who wish to make money by hosting ads from AdWords on their site, there is no fee for the service. For advertisers, the rates vary depending on the advertising channel, method, and the maximum intended reach.
The size of the AdWords network is the greatest advantage for both advertisers and website owners. For website owners, the large number of advertisers on the network means that they are likely to have ads shown on their sites that their audience is likely to respond to, which means more ad revenue for them. Advertisers get access to all of the sites that have signed up with AdWords as well as access to the advertising space on the most popular search engine in the world. Both parties also benefit from the complex algorithms that AdWords uses to decide which ad to put where. The same algorithms that produces search engine results for Google are being employed by AdWords to ensure that the ads shown on a site are appropriate for the site’s content and demographic.
One disadvantage of using AdWords is that the rates are not as favorable as the rates on other Advertising networks. Also, as with all Cost Per Click advertising systems, every click on an ad costs the advertiser money, whether or not the person makes a purchase. Google also doesn’t give out data that would be helpful, such as the performance of other ads in the same service as you.