Google’s advertising product and main source of 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, in a contextual manner based on keywords.

Adwords advertisements are short, and consist of a title, two content lines, and a display URL.

Advertisers pick keywords that relate to 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, in many cases to a specific landing page. The display URL and the landing URL are now required to be the same to avoid things like re-directing to other sites.

Keywords cost more when they are more popular. If a lot of people are bidding on the word “Bichon Frise grooming tips” the cost per click will be much higher.

Depending on the keyword, a click may cost anywhere from $0.10 to several dollars, with the assumption being that the company is selling enough product to be able to get a good return on such an investment, either through lead generation, or sales of product/s.