Google AdWords

Websites advertise with the search engine Google with Google AdWords. These text-only ads show up as "Sponsored Links" on Google's search results page when Internet users perform a search on Google. Ads either show up in the top banner of the search results page (you pay more to display an ad here), or in the column to the right of the page.

Payment for Internet advertising is determined by clicks (when a visitor clicks on a link) or impressions (each time an ad is displayed on a screen).
Companies advertising with AdWords choose from either paying for each click ads receive (PPC, or Pay Per Click), or paying per thousand impressions (PPM, with the "M" referring to the Roman numeral for thousand).

Companies advertising with Google AdWords are generally required to make a payment in advance. Companies then set a budget of how much they will pay for advertising on a daily, weekly, or monthly basis. Once the budgeted amount is reached, Google will stop displaying ads, ensuring that a company's advertising costs do not exceed budgeted amounts.

Google displays ads relevant to the search keywords entered in by web visitors (known as "site targeted ads"). For this reason, Google recommends the inclusion of keywords in the ad text to increase impressions. Ads also may be displayed based on disclosed or undisclosed location (including the geographical location determined by the IP Address of a computer, mobile phone, or other Internet-connected device). So, if a person in Atlanta searches with the keywords "Auto Insurance" Google AdWords will use the IP address to determine the physical geographical location of their computer. Instantly, Google AdWords will display ads for local Auto Insurance companies, in the sponsored links section of the Regular results page.

Google AdWords requires all advertisements to be brief (three short lines of text, including title, plus a fourth line for the website address). Google sends ads through an automated editing process, which checks for spelling and style, as well as banned content (including inappropriate language, or websites Google doesn't do business with, such as gambling or paid essay writing services for students. Irregular spellings or breaches in Google's approved style (such as adding exclamation points after a headline) must be approved by Google.

Google Inc.'s major share of income comes from advertising revenue gained through AdWords and AdSense. AdWords is a leader in the online advertising service provider industry.