Have you heard about Google AdWords?

OK, this instant Im going to explain a bit about it.

First of all, you understand as well that Google is still the #1 Search Engine in the net, leaving Overture at the second place. If you type a word or a phrase in Googles search box and press "enter", a large number of links will appear in front of you, related to the subject youve typed earlier.

Take a look at the right hand side of the main page. There should be another group of links complete with their descriptions, right? Only, these ones are much smaller than those main link results. What is the difference?

Do you see the subtitle.. Sponsored Links..? Those hyperlink results on the right hand side is called Google AdWords. People bid a certain price to Google to put their links on there everytime visitors search for related keywords. Those advertisers are only paying for the numbers of click-throughs to their links. This kind of marketing is called the Pay Per Click (PPC) advertising.

In order to reach a higher position in the backlink results, Google has set up a unique formula. Lets say you want to put your hyperlink in Google AdWords and you bid for "flowers" as your main keyword. You are not the only one who bid for that keyword. There are lots of everybody who also bid for it, since they also want to promote their "flowers" sites!

The unique formula of Google AdWords is that you can not reach the #1 position only by increasing your bidding price. Google also considers your Click Through Rate (CTR). CTR is a assessment of value that represents how many click-throughs (clicks on your advertisement ) you get among your ads impressions. Too many difficult words..?

OK, lets try it this way... Impressions is the frequency of your ads appearance in the search engines result page. If your ad appears 500 times, than your ads impression is 500. But, of course you dont get a click everytime your ad shows up. From those 500 impressions, perhaps you only get 1 click. This makes your CTR = 1/500 = 0.002 = 0.2%

The better the CTR you have for an ad, the lower you have to bid for the identical position.

That means, Google also rewards the sizeably successful content of your ad. When your advertisement gets a lot of click-throughs, that means you have a nice advertisement and Google rewards you for that! Your advertisement is dazzling according to Google if your ad is relevant with the content of your site.

In Google AdWords, the rich ones dont always win... the smart ones do!

Of course there are still a lot of things we havent touch regarding Google AdWords, but we have to do it later. After all, this is a quick overview for beginners, right?