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AdWords is a leading advertising system by Google, allowing advertisers to offer links to their sites using related keyword searches and a specialized section of page space. Advertisers bid with a maximum amount paid per click for the ad, and AdWords aims to increase website traffic for business owners. The program is meant to be a quick and easy way to increase web traffic, especially for small businesses without large advertising budgets. AdWords accounts are set up in just a few steps and can be paid for through online credit card transactions. The program also offers an option to let Google design the corporate website for companies that are building both an online site and its advertising at the same time.
AdWords is the leading advertising system operated by one of the largest websites in the world, Google. A major source of revenue for the company, AdWords allows advertisers to offer links to their sites. Using related keyword searches, simple site descriptions, and a specialized section of page space on Google sites, AdWords aims to increase website traffic for business owners while also making money for society mother.
The program was launched in 2000 with around 350 companies participating. The basic model allows advertisers to bid with a maximum amount paid per click for the ad. Advertisers enter keywords related to their services and the ad will appear in a sidebar labeled “sponsored ads” when searching for related keywords. The advertiser typically only pays if the ad is clicked, although position in the sponsored listing and likelihood of the ad appearing can be determined by the advertiser’s overall budget and relative popularity of the site.
AdWords is meant to be a quick and easy way to increase web traffic, especially for small businesses without large advertising budgets. AdWords accounts are set up in just a few steps and can be paid for through online credit card transactions. The program also offers an option to let Google design the corporate website for companies that are building both an online site and its advertising at the same time.
As partnerships and mergers have increased, the program can now offer users ad space on several websites considered Google partners. This can benefit both the parent company and advertisers by making optimal use of the available web space. Not only can the advertiser expand its audience of potential viewers, Google increases its chances of potential payment by placing ads on numerous pages.
The success of AdWords has to be considered on two levels. For Google, the program is clearly a success. Revenue for the website has grown tremendously since the program’s launch in 2000, with 2008 revenues exceeding US Dollars (USD) 21 million. For companies that advertise using the program, there are mixed results. While some users report a huge increase in volume and sales, others suggest that there are flaws within the program that could benefit Google but defraud the user.
A major complaint is that there is no information about competitor offerings that affect a website’s ranking with Google. Since a business can’t know how much other businesses are paying, its owners have no idea whether they should raise their bid or how much to do so. Another complaint suggests that because Google is paid per click, the company doesn’t bother to take tough countermeasures against fraudulent behavior intended to give the impression of increased traffic.
To measure results, an advertising company may want to obtain a few months of data before determining program effectiveness. If the website’s profits and site traffic have increased enough to compensate for the pay-per-click, AdWords can be considered a successful advertising tool.
