ADWORDS FUNCTIONS

AdWords is Google's main advertising business and main source of revenue of this company representing 96% of the nearly 37.9 billion dollars that the company earned in 2011. The service uses the advertising system by Cost per Click (CPC) and ( CPM) consisting of advertisements in the form of links found mainly in search engines related to the keywords that Internet users are searching. As a way to purchase highly targeted advertising regardless of what the advertiser's budget. AdWords ads are displayed along with search results on Google, as well as on search and content sites, called the Display Network, the growing network of Google ads, including AOL, EarthLink, HowStuffWorks and Blogger.


Rating ads

Ad position on the results page is given by:
Ad Rank = maximum CPC x Quality Score
The Quality Score is determined by the performance history on Google: your click through rate (CTR), relevance of ad text, historical keyword performance, the quality of the landing page and other relevancy factors.
In short, Google values ​​ads whose content has a closer relationship with the search carried out, and thus, makes it difficult for companies to display ads on search results in sectors unrelated to their field of activity.
CPM - cost per thousand impressions

It is a system in which the advertiser pays an agreed amount by the number of times the ad is seen by the consumer, whatever their subsequent action. This agreement is usually stipulated the amount per thousand impressions.
CPC - Cost per Click

Is a system in which the advertiser pays an agreed upon by the amount of times the ad is clicked value and not only envisioned, thus allowing the advertiser to pay a certain amount only when the user clicks on certain ad. It is considered by many the most fairly seen advertising that the user who conducted the survey only clicks on the ad is already inclined to purchase.

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