Google’s advertising product and main source of their revenue. Adwords offers pay-per-click advertising for text and banner ads. When advertisers use Adwords to promote their product or service, their ads appear on any related website that is using Adsense.

Adwords advertisements are short, and consist of a title and two content lines. Advertisers pick keywords that relate to that their ad, and then bid on these keywords. They pay each time someone clicks on their ad. The advertisement will take the clicker to the merchant’s website.

Keywords cost more when they are more popular. For example, if a lot of people are bidding on the word “internet marketing” then cost per click will be much higher. Depending on the keyword, a click may cost anywhere from $0.10 to several dollars.

Mastering the use of Google Adwords and effective pay-per-click campaign management is one of the keys to success in online business.