Advertising on Google: How AdWords Can Work for You

If you're looking to increase your customer base, advertising on Google is a quick way to reach millions of targeted potential customers. Their innovative AdWords program makes it easy for even small companies to advertise their products.

AdWords works by having businesses purchase certain keywords. When a user goes to Google to perform a Web search, they enter in their search terms or keywords. Google then displays not only the search results, but also short ads from companies using AdWords.

You may have noticed these ads when using Google to perform your searches. They will normally be displayed on the right side of the screen as well as in shaded bars above the search results.

But your ads don't just appear on Google pages; they also display on Web sites that participate in the Google AdSense program. This program allows sites to display Google AdWords on their sites. Again, placement is determined by the selected keywords.

Companies purchase these keywords and decide how many clicks they want to pay for. Each keyword is assigned a value, based on popularity. Some key words will cost as much as $5 or more per click, while other keywords will only cost as little as 5 or 10 cents.

This amount is then deducted from the business’s account until the set maximum spending amount is reached. There is no minimum purchase, which means that a company can decide how much they want to spend on their advertising campaign.

Now that the basics are out of the way, you're ready to set up your Google AdWords account.

First, study the keywords that are appropriate for your business. Try to find at least twenty keywords that describe the products you sell. Once you have your master list, you can then begin the sign-up process with Google AdWords.

Registration is easy, and takes only about 15 minutes. Once you're registered, you'll select the keywords that you want to purchase. As mentioned earlier, prices for keywords vary accordingly to their popularity.

Once you've submitted your list of keywords, you'll set your spending limit. Your ad will then display until you have reached the amount of clicks that you have predefined. If your desired keyword is $2 per click and you have set a $50 limit, your ad will display until you have received 25 clicks.

Next you'll provide your ad copy. Your copy should be short and contain the keywords that you selected. For example, if you selected the keyword "camera," your ad would need to include this word. Don't forget to include a call to action — a critical element of any advertising creative.

Targeted advertising is a very useful way for small businesses to maximize their budget and receive the traffic they need for their sites. With Google’s no-minimum-purchase policy, even tiny companies can benefit from advertising with the No. 1 search engine.