The foundation of this form of advertising is the Google search function. While Google has evolved into a powerful corporation, its bread and butter is still its search engine. Keyword targeted advertising with Google AdWords takes advantage of Google’s massive search traffic.
The first thing an advertiser does is pick the keyword phrases that target the wanted demographic. For example, if an advertiser is selling flowers, the advertiser would pick keywords such as “buy flowers” and “flowers online”. An unlimited number of keyword phrases can be selected, however most advertisers don’t pick more than a dozen phrases.
Next, the advertiser bids on the amount of money that they are willing to pay per click. The amount of the bid will determine where the advertisement will be shown on the search results page. The higher the bid, the higher priority the ad is given.
The third step is to create the advertisement. Google AdWords on the search result page are text ads that must follow a certain format. Usually between two and three lines of text are used with the text linking to the advertiser’s Web site.
