Google AdWords
From Search Engine SEO SEM
Google AdWords is Google's advertising program that lets you create simple, effective ads and display them to people already searching online for information related to your business. Text ads are the most basic type of AdWords ad. They are sometimes known as "sponsored links" because the title links to a website. AdWords is based on matching relevant ads to a user's web search or browsing experience.
AdWords Text ads may appear on Google, search partners, or the Google Content Network. On search sites, part of the ad text appears in bold whenever it matches or nearly matches a user's search query.
For most languages, text ads can contain, including spaces, 25 characters for the title, 70 characters for the ad text, and 35 characters for a display URL. On Google, this is displayed on 4 lines: a title, 2 lines of ad text (each with 35 characters), and a URL line. However, the format may differ on Google partner sites.
How AdWords Bidding Works
A bid is the amount an advertiser is willing to pay per click, per thousand impressions, or per acquisition. Each time your ad is eligible to appear, an auction takes place among your ads and all the other eligible ads. Your bid is one of the factors that determines whether your ad shows, and in what position.
The most common type of bid is a maximum cost-per-click (CPC) bid. When you use CPC bidding, you pay only when someone clicks on your ad. Raising your CPC bid can improve your ad's position, and lowering your bid can decrease your ad's position. Ads are not ranked solely by their bid.
How AdWords Ads Ranking Works
Ranking on the Search Network:
Ads are ranked on search pages based on a combination of the matched keyword's CPC bid and Quality Score. Quality Score is determined by the keyword's clickthrough rate (CTR) on Google, relevance of ad text, historical keyword performance, landing page, and other relevancy factors. Having relevant keywords and ad text, a high CPC bid, and a strong CTR will result in a higher position for your ad.
Ranking on the Content Network:
Ads are ranked on content pages based on the ad group default bid (when there aren't more specific bids that apply), the ad's past performance on this and similar sites, and the landing page quality. However, if you have set a Content bid or a bid for a specific placement, these will overrule the ad group default bid when your ad runs on the Content Network or the placement you have selected. These more specific bids affect your ad rank, so you might consider increasing bids for placements on which you'd like to rank higher.
