Adwords is the pay per click advertising engine responsible for most of Google's $21 billion annual revenue. Stripped down it is a very simple system that displays three lines of text and a link alongside search results, with each advert available to the highest bidder.
Whilst that may sound simple the process behind it is anything but. Having started as simple text advertising the system has been expanded to include display, mobile and now video adverts. The placement of these adverts has also been extended beyond just Google search results to include Ask.com, aol search and also a massive network of content publishers. Adsense is the ying to AdWords yang.
Managing AdWords can be difficult and an industry of search engine marketers has sprung up to help clients manage expenditure due to both its importance and complexity. Advertisers bid on keywords but are charged on a pay per click basis.
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