Google AdWords is the advertising program introduced by Google on the basis of a pay per click method.
With Pay Per Click (PPC) system, an advertiser (You) pays only the ad placement when a searcher actually clicks on your link ( no matter if after the visitor purchase from your site or not).
This means that your advertisement runs continuously at the cost only of the number of people who visit your site.
When you sign up for Google Adwords you can design your textual advertisement, in order to fit with your product or service and you can also submit a list of relevant keywords.
Your advertisements will appear on the right-hand side of a Google page, when a reader actually looks for your keywords.
However, there are a lot of people like you that wants to advertise, so the conseguence is that there is a huge volume of businesses and sites with similar keywords.
To solve this, Google Adwords created a bidding system for keywords with a content relevancy system.
In the bidding system, you can bid and compete between the others advertisers.
The keywords auctions normally start at around 5 cents and through this system the different advertisers try to outbid the competition.
However, Google also has an automated system that scan the relevance of the content of your website to the keywords submitted to the system.
You have to pay Google once the searcher clicks on your ad.
You can maximaze the sales of your website increasing the relevance of your content and keeping all the links updated.
You have to minimize the irrilevant clicks of your ads and target to people truly interested that will look to purchase a product similar to yours.
You want to create different ad groups, in order to reach all your product range.
You can also think to create different campaign in order to reach all your product range.
An important thing is to track the results of your campaigns, in order to check which keyword works better than the others and Google will offer you many tools to do this (example Google Analytics).
Finally you can decide how much you will pay per click and per day.
For example, you set a maximum cost-per-click (CPC) of 5 cents and a daily budget of 50 dollars, you will have a maximum of 500 daily clicks from your ads, after this Google will stop for that day to run your ads.
Of course there are a lot of opportunity to advertise your blog, service or product for FREE.
But with AdWords you can have targeted visitors, driving traffic to your landing page and making money online with it.