AdWords

Google AdWords is an advertising medium established in 2000 which allows webmasters to bid for keywords specific to their website. These keywords enable the website to appear in advertising areas of Google (the top or right hand side) irregardless of their natural search engine ranking. Google refers to these as sponsored links.

The method of bidding for a keyword is a technique first developed by Overture for their own advertising medium. Overture's model was based solely on CPC, and ranked in order on the page from the largest to smallest amount per click. Google created the ability to rank the positions based upon the popularity of the ad. The presumption being, that the more often an ad is clicked on, the more relevant to the search result it is. Some claim that Google figured if it based the ad results on a CPM model, it would increase the revenue it took in. Google says it did it to increase the relevancy of the ads.

You can find out more information about AdWords, or check out the official AdWords blog to get the latest AdWords news and tips.

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