Adwords – The Essence of What it is

Adwords is a paid method of getting users to visit your page based on what keyword they were searching for.

This page is designed as an absolute starting point for someone to understand what Adwords is.

Every second 40,000 searches are done on google.

When the user looks at the results it is a combination of paid advertisements and unpaid results by Google.

The unpaid results are the listings that make up the majority of the page. These are called organic listings.

The paid results above, below, and to the side of the organic listings that look very similar to the organic listings are called Adwords.

The Adwords listings will have something that lets you know they are paid results. These ads will say Ad next to them or something similar.

The Adwords ad will be chosen by Google based on the keyword or keywords you searched for.

For example if you search for cat toothbrush, then Google will show you an Adwords ad for someone selling a cat toothbrush.

People who are selling a product will tell Adwords what keyword they want their product to show up for. The Advertiser will also tell Google how much they are willing to pay if someone searches for that keyword and the person clicks on it.

For example Bob and Sally both sell cat toothbrushes.

Sally says she will spend up to $2 if someone searches for cat toothbrushes.

Bob says he will spend only $1.

Sally’s ad says, Best Cat ToothBrushes in the World.
Bob’s ad says the same thing.

If everything else is equal, Google will then show Sally’s ad because she is willing to pay more.

In this case let’s pretend Google charges Sally $1.50 each time someone clicks on her ad.

This cost per click of $1.50 is called the Cost Per Click.

Cost per click is abbreviated as CPC.

Another important number is how often a person searches for the keyword.

In our example, let’s pretend in the U.S. 1,000 times per month someone searches for cat toothbrush.

If someone searches that many times per month, and our ad is number one, then it will show up 1,000 times per month.

This number is called the number of searches.
Google calls this number the Search Volume.

If the ad is shown 900 times per month out of the 1,000 searches, then we say it had 900 impressions. Impressions are the number of times an ad shows up whether the person actually saw it or not.