Google AdWords is an internet marketing system developed and operated by Google, whereby advertisers bid on specific keywords to display small ads, service listings, product listings or video content on web pages. It can also place ads on mobile apps, video sites, and social networks, as well as non-search results.
If you want to make money with Google AdWords, you need to have an understanding of how the system works. To start with, your ads will appear alongside the search terms that people type into their browsers. However, unlike some pay per click advertising methods, Google AdWords is not based on keywords or keyword density. It's all about keywords and the number of searches that you get for those keywords.
When you bid for an AdWords campaign, you bid per keyword. The higher the bid, the lower the cost per click, but the higher the competition, the higher the cost per click. For example, if there are two competing keywords (such as 'dog training 'pet dogs') you may be bidding for a single click for each keyword, and this is how Google AdWords work. You won't have the highest bid on each keyword, so you'll have to compete against a lot of other advertisers for each click. The higher your bid, the higher the price you will pay, but the higher your conversion rate, the better.
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The success of your Google AdWords campaign depends on the number of clicks you receive for each keyword. Your click through rate is the percentage of people who click on your advertisement and visit the website you bid for. If the click through rate for your keyword is low, then your ads will not attract many clicks, and it's likely that no one will buy anything from you based on the cost per click you are charging. If your click through rate is high, though, you may get an influx of visitors to your site and this could mean a sales pitch.
Unlike traditional pay per click advertising methods, with Google AdWords you don't have to choose a specific keyword to advertise. You can bid for any keyword that has enough searches on it, or any category that you think might be of interest to the targeted audience. There is also a 'targeted niche' which shows a list of top ranked keywords and their corresponding rates, so that you can target your campaigns to specific areas, such as children's products or travel destinations.
With Google AdWords, you can make money even if your click through rate is low, as there are no minimum bid amounts. You can earn money with AdWords by targeting specific niches, which you find most attractive, or targeting only specific keywords for your ad campaigns, but with high search volume, you could make money even if your ad rates are low.