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					            Google Adwords Tutorial
  Navigate Adwords Pay-Per-Click Advertising in Six Simple Steps

Step 1 – Understanding Google Adwords
Step 2 – Choosing your initial keywords
Step 3 – Set up your Adwords account
Step 4 – Choosing the right text for your ad
Step 5 – Refining your keyword phrases
Step 6 – Set your budget and activate your ad!


In 2000, Google introduced their flagship Adwords program to the world – site-
targeted pay-per-click (PPC) advertising for businesses selling any product and with
any budget. The original model for Adwords was actually copied from Overture (later
acquired by Yahoo), and started life as a far simpler version of the mammoth
advertising program it is today.

What many people don’t realize is Google didn’t invent search or auction-based pay-
per-click advertising, they merely perfected it. Until Adwords, nobody had thought of
your basic search being a money-making opportunity. Google’s genius was in seeing
the potential in adding relevance (based on how many times an ad is clicked) to the
auction-generated position of ads. At the time, other providers of PPC advertising
gave their highest positional-rankings to the advertisers who paid the most. Google
realised that if the ad wasn’t actually relevant to the search, few people would bother
to click on it anyway – and then nobody would be making any money! They
developed Adwords so that even ads that have bid less for their placement, but are
clicked on more often, can still rise to the top of the listings.
Why use Adwords?
Google Adwords is an easy way to start an internet marketing campaign, but its main
benefit is that the cost can be capped to fit any budget. At least – that’s what Google
say. In reality, an Adwords campaign run on a very limited budget may not be that
effective, as the ads may not appear often enough to produce good results. The
Keyword Tool (more on this later) will help you predict the estimated cost of your
campaign. To get the best out of Adwords you need to set a realistic budget and
research your keywords carefully.

Step 1 – Understanding Google Adwords

In a nutshell, an Adwords ad is a simple but effective text-based ad, targeted to
appear either when the search words (known as keywords) the advertiser chooses
are typed into the search box, or on websites which carry content that is of interest to
the target customers. (Banner ads are also available on Adwords but we will be
focussing on the Starter Edition here – you can progress to more sophisticated ads

Okay, time to get started. Let’s take a look at Adwords ads in more detail. We’ll
assume for our example that out there somewhere is a nice young man who wants
to send his mom some flowers for Mother’s Day. He wants to do it online (obviously)
so he types into his Google Search box ‘sending flowers’.

Figure 1.1 shows his results. The results you see on the left, below the shaded pink
area, are the search engine results based on page rank, popularity and relevance to
your search. The results in the column on the right of the screen, and in the shaded
pink area, are adverts which have been created using Google Adwords.
Figure 1.1 Searching for anything on Google brings up a list of adverts as well as search results.

Do your own search on your version of Google (this one is in the UK). What ads
show up in the right-hand column? Would any be useful if you were looking for a
company to deliver a bunch of flowers to your mom on Mother’s Day?

These are examples of Search Network ads, meaning that they appear on Google’s
network of search pages. The other type of Adwords ads available are called
Content Network ads, and these appear within the content of the pages of websites
that have signed up for the Google Adsense service and opted to have targeted ads
on their pages (see Figure 1.2).
Figure 1.2 An example of a Google Adwords ad appears in the third box down in the right-hand

It is fairly easy to set up an Adwords campaign. Google provide a user-friendly
control panel and tools to help you choose the right keywords for your ad. The ins
and outs of PPC are quite complicated (but don’t worry – you’ll understand them as
well as anyone after reading this tutorial), but basically the way AdWords works is:

Advertisers enter keywords which are relevant to their business, decide on the
wording of their advert, and then Google places the ad on relevant sites and listings.
Advertisers then bid on a cost-per-impression (CPM) basis for where and how often
their ads are placed (more about this later). You set the limit for how much you want
to pay per day, week, or month, and this dictates the frequency of the placing of the
ad. The minimum CPM you can set on a campaign is currently 25 cents (2008).

Now let’s move on to what is probably the most important part of an Adwords ad –
keywords. It is so important, in fact, that we’ve split it into two parts: Step 1 –
Choosing your initial keywords, and Step 5 – Refining your keyword phrases.
Step 2 – Choosing your initial keywords

The best place to start planning your ad is with Google’s powerful Keyword tool:

With the keyword tool you can search for keywords either from a descriptive phrase
or word, or by entering the URL of your website (e.g. and
letting Google come up with suggested keywords which relate to the content on your
For our example we’ll imagine we have a business which sells motorcycle spares on
the Internet. Let’s try typing a descriptive phrase into the keyword tool. (Figure 2.1)

Figure 2.1 Google’s Keyword Tool.

We type the phrase ‘motorcycle spares’ into the keyword box, enter the characters in
the picture below (to guard against web-bots) and click Get keyword ideas. Notice
the Use synonyms box is checked.
After a few moments Google produces a list of keyword phrases. (Figure 2.2) ...

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